Be wary of companies with inconsistent earnings growth from "summary" of The Little Book That Builds Wealth by Pat Dorsey
Investors are often attracted to companies that show strong earnings growth year after year. However, it is important to be cautious when evaluating companies with inconsistent earnings growth. Inconsistent earnings growth can be a red flag for potential problems within the company.
When a company's earnings are erratic, it can be difficult to get a clear picture of its financial health. Inconsistent earnings growth can be a sign of poor management, volatile industry conditions, or other underlying issues that may impact the company's long-term performance. Investors should be wary of companies that have a history of erratic earnings growth, as this may indicate a lack of ...
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