Max Fakhre

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In general, any time that earnings growth outstrips sales growth over a long period—for example, 5 to 10 years—you need to dig into the numbers to see how the company keeps squeezing out more profits from stagnant sales. A big difference between the growth rate of net income and operating income or cash flow from operations can also hint at something unsustainable.
The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market
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