{"id":2329790,"date":"2021-03-11T10:59:05","date_gmt":"2021-03-11T15:59:05","guid":{"rendered":"https:\/\/www.valuewalk.com\/?p=2329790"},"modified":"2021-03-11T10:59:05","modified_gmt":"2021-03-11T15:59:05","slug":"big-returns-practice","status":"publish","type":"post","link":"https:\/\/www.valuewalk.com\/big-returns-practice\/","title":{"rendered":"Big Returns – In Practice!"},"content":{"rendered":"

No sooner was the ink dry on my article<\/a>, Big Returns! than the market provided a wonderful example. To set the stage, here is the central point I made in the original article. The idea was that if investors want big returns, they cannot look to stocks of companies whose values are largely driven by current earnings. As we have noted at Cornell Capital Group<\/a>, the problem for investors seeking big returns is that growing earnings is hard. A company has to build a new plant, buy equipment, hire new employees, attempt to attract new customers, and so on. All that takes time, so stock prices<\/a> change slowly, there are no big returns. Expectations are different. They can shift dramatically in the short run. All you need is a change in sentiment regarding the future, no actual change in current performance is required. Investors looking for big returns are going to be drawn to stocks whose value is almost entirely attributable to expectations of future growth.<\/p>\n\n\t

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