“A great business at a fair price is superior to a fair business at a great price.”
Growth rate, earnings, share to earnings ratio, and variations in these numbers over time. If I had to pick the most important for companies that are good (positive earnings, positive growth rate, positive cash flow), then I’d pick minimizing variation in earnings year over year. Can’t get compounding without consistency. Then, choose growth rate because the power of compounding is worth the price.
