Thursday, February 12, 2009

Corporate earnings growth

Studies over 50 yrs have shown the following

Only 10% of US co.s increased earnings by 20% for 5 consecutive yrs
Only 3% of US co.s increased earnings by 20% for 10 consecutive yrs
0% manage to do that for 15 consecutive yrs

Only 8 out of 150 Fortune 500 co.s increased earnings by an annual average of at least 15% for 20 yrs

On average, over all 10-yr period, earnings grew by 10%pa.
But for the biggest 20%, earnings grew by 9%pa.

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