A company that can grow earnings and protect those earnings with a moat can increase its free cash flow faster than the market, driving the stock price up faster than its peers.
Love does not use “superperformance” loosely. For him, a superperformance stock is one that rises at least 300% to 1,000% within a few years, driven not by speculation but by genuine business expansion. Unlike short-term momentum plays, these stocks exhibit durable competitive advantages, rising profit margins, and increasing return on equity. Love emphasizes that such stocks are rare — perhaps 1–2% of all publicly traded companies in any given cycle. superperformance stocks by richard love pdf
– Earnings without sales are unsustainable. Love requires double-digit quarterly sales growth and expanding net or operating margins. Companies that increase prices without losing volume (pricing power) are especially favored. A company that can grow earnings and protect