According to Richard Love, are not just fast-growing companies; they are stocks that exhibit extraordinary, often rapid, price appreciation. These stocks typically experience massive growth—doubling, tripling, or even increasing by 10x—within a relatively short timeframe (usually 1-3 years).
: New softcover editions are available on Amazon and AbeBooks , though some reviews note they may be lower-quality reproductions of the original 1977 text.
Look for a sustained track record of rising annual net income, ideally accelerating over the past 2 to 3 years.
In an era of algorithmic trading, high‑frequency data, and complex derivatives, Richard Love’s “Superperformance Stocks” stands as a refreshing reminder that the fundamentals of successful stock picking have not changed. The names of the winning stocks change every year, but the catalysts, the cyclical patterns in sentiment, and the common characteristics of superperformers remain constant.
: The single most important factor. He looked for large, often surprising increases in earning power. Catalysts for Growth super performance stocks richard love pdf
A structural shift in the broader economy that benefits the company's niche.
Unlike companies that pay out 100% of earnings as dividends, super performance stocks retain a significant portion. Love looked for a , provided the retained capital is earning that 15%+ ROIC.
Investment process (step-by-step)
While Love wrote his framework decades ago, the principles are timeless. Running the Love screens today might yield stocks like (hypothetical examples for educational use): According to Richard Love, are not just fast-growing
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: The single most powerful driver is a large, unexpected increase in earnings power.
When analyzing the historical data, Love identified several recurring variables present in almost every monster winner. If you are looking to build a stock scanner based on his principles, these are the primary metrics to focus on: Small Market Capitalization and Low Float
: Look for new products, new management , or mergers and acquisitions that can fundamentally shift a company's earning power. Look for a sustained track record of rising
Use the PDF as a starting screen , not a final buy order.
Love argues that identifying these stocks requires looking beyond conventional wisdom and focusing on a combination of specific company characteristics and broader market timing. Key Characteristics Defined by Love:
For investors searching for a "Richard Love PDF" or trying to track down a rare physical copy of this classic, understanding the core methodology is essential. Love was one of the earliest market researchers to systematically analyze the historical characteristics of stocks that multiplied in value by 300% to 1,000% or more within brief periods.