Judgments on Growth

[A] good analyst is more adept at making judgments on growth. That’s their job – based on the business and the company’s position in it, how fast is the company going to grow? It’s pretty hard to lose if you’re right on the growth rates when the growth rates are high. In a 30x-earnings company growing 25% per year, you’ll be bailed out pretty quickly because in three years the earnings will double and the multiple on that will then only be 15x.