Is It A Quality Premium Or Not Essay - 1601 Words

So, you are taking, with high growth comes two risks; one is growth of execution, and the other is the valuation risk that comes with it. So, not only is growth investing risky, but it is really risky. And, I think, that is where we have evolved quite a bit as well, respected of whether there is a growth background or not a growth background. I wouldn’t call ourselves gap investors, because what I do think is important is, so, here is an open question that we don’t have an answer for. But, rather than saying should there be a growth premium or not, I think a better question is, should there be a quality premium or not. And, what is the quality premium and how do you think about it. I guess, back in the day you would think about a peg ratio, so as now is a peq ratio or something like that where what is the right unit of valuation premium you should pay for each incremental unit of quality. We have actually spent a ton of time thinking about this and working on it. So, valuation absolutely plays a role in this and I think we have to think about the relation, not have to, we do think about the relationship between quality and valuation. What I am kind of implying here, in theory, is that maybe the quality valuation premium is more warranted than it is for a growth. And, also, more sustainable. Now, that is an open question, but that is our theory. And, thus, you know, we still want to, so this is critical to where we spend a lot of research time, to dumb it down to say,Show MoreRelatedForecasting Quality Grade And Certified Angus Beef Premiums By Joe Parcel1065 Words   |  5 Pages The data I chose to analyze is an article entitled, Forecasting Quality Grade and Certified Angus Beef Premiums, by Joe Parcel. This article analyzes the risk and uncertainty of forecasting the future prices of premiums in certified Angus beef grid pricing. 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