Sustainability of High Growth Rates
High growth rates cannot be sustained indefinitely. Ben McClure suggests that period for which such rates can be sustained can be estimated using the following:
| Competitive Situation | Sustainable period |
|---|---|
| Not very competitive | 1 year |
| Solid company with recognizable brand name | 5 years |
| Company with very high barriers to entry | 10 years |
Read more about this topic: Earnings Growth
Famous quotes containing the words high, growth and/or rates:
“[F]or women, like tradesmen, draw in the injudicious to buy their goods by the high value they themselves set upon them.... They endeavor strongly to fix in the minds of their enamoratos their own high value, and then contrive as much as possible to make them believe that they have so many purchasers at hand that the goods—if they do not make haste—will all be gone.”
—Sarah Fielding (1710–1768)
“Parents find many different ways to work their way through the assertiveness of their two-year-olds, but seeing that assertiveness as positive energy being directed toward growth as a competent individual may open up some new possibilities.”
—Fred Rogers (20th century)
“Good government cannot be found on the bargain-counter. We have seen samples of bargain-counter government in the past when low tax rates were secured by increasing the bonded debt for current expenses or refusing to keep our institutions up to the standard in repairs, extensions, equipment, and accommodations. I refuse, and the Republican Party refuses, to endorse that method of sham and shoddy economy.”
—Calvin Coolidge (1872–1933)