Hi guys,

I have been researching, studying, reading, watching videos and most of them have indicated to invest in stocks which have had consistent earnings and growth for at least 5 years and therefore, it is not speculative. However, my questions are as follows,

1. If this is the case, wouldn't it be by the time it has had consistent earnings and growth for the last 5 years, the SP has already caught up to the value of the stock? If this is the case, wouldn't we have already missed the train? (the likes of SUM and RYM).

2. If number 1 is the case, they what else do we base it on? Are we basing it totally on its positive cash flow, balance sheet, management and etc?

3. So we know calculating the intrinsic value can be quite subjective, so therefore, companies with consistent earnings and growth for at least 5 years, a more accurate value can be calculated for. However, if companies which don't, are we basing it on the future forecast growth rate? Doesn't this become speculative?



Thanks!!!