The pursuit of growth can make investors do odd things.
They may be tempted to venture into less established businesses or into sectors such as technology, whose 'growth' label provides comfort that they are at least fishing in the right pond. Perhaps surprisingly though, some of the UK market's strongest performers over the last 25 years have been long-established businesses in ostensibly low-growth industries such as tobacco, engineering and support services. What can we learn? Firstly, rapid top-line growth is not required. A more reliable outcome can be achieved with single-digit revenue growth, delivered by a combination of modest but...
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