9 Golden Rules of Stock Investing (Rule #2)by Unknown
Rule #2 : Company must have a 30% year to year growth in profit after taxes. So your target businesses deliver on sales. Good. But sales growth must lead to higher profits. We are referring to profits after tax (PAT). Ideally, PAT should have outpaced the turnover growth through the past three years. If sales have grown at 30% or higher but PAT growth is slower, there is a problem with profit margins.