The search for global growth

GLOBAL GROWTH

Jim Hamel, portfolio manager at Artisan Partners, explains why businesses undergoing profit acceleration are the key to finding growth.

There is a fundamental belief that stocks follow profits over any measurable period of time. So it is no wonder investors look for companies where they think profits are accelerating, or soon will. Catalysts driving profit acceleration include external forces, such as technological breakthroughs or regulatory changes, or internal forces such as a new management team, a new product cycle, or a restructuring. Finding companies at an early enough stage in their profit acceleration cycle, in order to capture as much of the resulting growth as possible, is fundamental to the success of inv...