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:
“We want our children to become warm, decent human beings who reach out generously to those in need. We hope they find values and ideals to give their lives purpose so they contribute to the world and make it a better place because they have lived in it. Intelligence, success, and high achievement are worthy goals, but they mean nothing if our children are not basically kind and loving people.”
—Neil Kurshan (20th century)
“All growth is a leap in the dark, a spontaneous unpremeditated act without benefit of experience.”
—Henry Miller (1891–1980)
“[The] elderly and timid single gentleman in Paris ... never drove down the Champs Elysees without expecting an accident, and commonly witnessing one; or found himself in the neighborhood of an official without calculating the chances of a bomb. So long as the rates of progress held good, these bombs would double in force and number every ten years.”
—Henry Brooks Adams (1838–1918)