Super Performance Stocks Richard Love Pdf — [portable]
(Current Earnings) and A (Annual Earnings) map directly to Love's focus on earnings acceleration.
Love’s unique angle was the relationship between the and stock market performance.
Furthermore, Love adds two important qualifiers. The move is considered ended if the stock fails to reach a new high within six months, or if it suffers a price reaction of 25% or more. This strict definition ensures that we are not merely looking at volatile, one‑time spikes but at sustained, powerful price moves that reflect genuine business strength.
Look for companies capitalizing on the AI infrastructure boom, GLP-1 weight loss drugs, or next-gen automation showing 50%+ quarterly EPS growth. super performance stocks richard love pdf
The Guide to Superperformance Stocks by Richard Love Published in 1977, by Richard S. Love remains a foundational text for growth investors. The book outlines a specific criteria for identifying "superperformance" stocks—those that at least triple in value within a two-year period.
Love outlined a predictable lifecycle that almost all super performance stocks transition through. Recognizing these phases allows investors to time their entries and exits effectively.
Moreover, Love observed that the monetary and fiscal environment plays a critical role. Lowering interest rates and fiscal stimulation are positive for stocks, creating the ideal environment for superperformance stocks to thrive. Conversely, rising interest rates and fiscal tightening make it much harder to find stocks with large upside potential. (Current Earnings) and A (Annual Earnings) map directly
: The stock must at least triple in price (300% gain) within a two-year period.
This goes beyond simple growth. A company growing 20% a year consistently is a solid investment, but it is rarely a "superperformance" stock. Love sought companies where the rate of growth was getting faster. For example, a company that goes from 10% growth, to 20% growth, to 40% growth quarter over quarter.
Furthermore, Love understood the forward-looking nature of the stock market. He noted that "The market discounts the future, and that might be enough to push the price higher significantly, even though the increase in earnings is not still visible." This is a crucial psychological insight: the stock price often rallies violently in anticipation of the acceleration. Once the earnings are fully "visible," the stock may stall or fall. Love warned that if those high expectations are not realized in the future, "the price of the stock may drop severely, as the move would inflate the valuation." The move is considered ended if the stock
The Blueprint for Massive Market Gains: Inside Richard Love’s "Super Performance Stocks"
Earnings continue to accelerate. The stock breaks out of its long-term base on massive volume, embarking on its primary multi-month or multi-year price run.
Within 10% to 15% of 52-week highs (looking for Stage 2 breakouts). Step 2: Vet the Qualitative Story