“Do not get confused between the company growth rate and the rate at which your invested money will grow. These are two significantly different things. A company’s growth rate helps us establish the most likely future price of the stock while the growth of your investment is determined by two factors – one of course being the above, and the other being the price at which you buy the stock. The latter of the two plays a much more dominant role many a times. That is why the intrinsic value calculation is so important.”
