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"More important, we want companies with strong earnings growth in the next three to five years."
This company still has a 27 percent earnings growth rate.
This year, the earnings growth rate is expected to top 15 percent.
He looks for earnings growth rates of at least 12 percent a year.
The family also wants earnings growth rates of 12 percent or more during the next three to five years.
Sometimes, however, the market gets ahead of overall earnings growth.
He estimates earnings growth at 23 percent for next year.
He sees earnings growth of 20 percent a year, on average, over three years.
If they get access to capital, small companies' earnings growth can be pretty strong.
"We are looking at this thing as a major source of earnings growth for the next five years," he said.
Not that earnings growth is bad for stocks, of course.
"We should have good earnings growth in 1997," he said.
The average earnings growth rate of the companies he holds is more than 20 percent.
Wall Street expects earnings growth to average 30 percent a year for the next five years.
"We think earnings growth will be in the high single digits."
"At these prices, you like them because of the earnings growth," he said.
Many companies use a few criteria, like sales or earnings growth.
In part, the share price has been driven by strong earnings growth.
He forecast earnings growth of 14 percent a year through 1992.
His goal is annual earnings growth of more than 15 percent.
She projects a 15 percent annual earnings growth rate over five years.
The actual rate of earnings growth is not that important, he said.
He expects earnings growth to average 15 to 18 percent over three to five years.
But its sales and earnings growth have picked up in the last two years.
Its decline in recent years has been due to higher earnings growth.