BROADCASTS.com

b'

We all know and love the high-growth companies that have (hopefully) helped to contribute to our market returns, but how can you run the tape measure over them? What kind of numbers can help you to value companies that are growing fast but are not yet maximizing profit margins? According to Claude Walker, the magic number is 40.

Claude Walker is the founder of A Rich Life where he writes the Ethical Equities column. He loves his ASX tech stocks and investing in smaller unloved and ignored microcaps where the market is much less efficient.

In this episode we chatted about The Rule of 40. He was inspired by the announcement from new CEO of Xero (ASX:XRO) Sukhinder Singh Cassidy. She has struck a completely different tone than the old CEO. She says that the company will now be \\u201cmore balanced and look to Rule of 40 as a useful performance evaluation measure in managing the balance of growth and profitability.\\u201d

Blog post available at: https://www.sharesforbeginners.com/blog/arichlife2023

Phil\'s Linktree: https://linktr.ee/phil_muscatello

Are you picking shares on gut instinct, buying on press tips or rumour? Do you struggle to find the time to keep up with the research and analysis that goes into evaluating potential stocks? Stockopedia are pleased to offer a special deal to listeners of this podcast \\u2013 a fourteen-day free trial and $125 discount on the first year of membership. That\\u2019s a saving of over 25%. There\\u2019s no better time to access the most comprehensive, easy-to-use investing toolbox for DIY share investors. Over 15,000 investors globally, just like you, have already unlocked the power of Stockopedia. Go to https://stockopedia.com.au/sfb for your free trial and special discount offer. This offer strictly ends on July 31, 2023.

Shares for Beginners is a production of Finpods Pty Ltd. The advice shared on Shares for Beginners is general in nature and does not consider your individual circumstances. Shares for Beginners exists purely for educational and entertainment purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Philip Muscatello and Finpods Pty Ltd are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708, AFSL - 451289.

Hosted on Acast. See acast.com/privacy for more information.