The different stages of a profit cycle: 'It is critical to take an agnostic view'

Definition of growth 'not limited'

As most indices and valuations alike continue to rise - particularly in sectors such as technology, but increasingly across the broad market - the bull market is showing signs of maturity.

A richer market environment has some investors questioning whether there are still compelling opportunities for accelerating profit growth. As growth investors, we believe it is critical to take an agnostic view of profit growth.  We do not limit our definition of growth to traditional 'growth' sectors, nor do we limit it to the top line. Rather, we are looking for accelerating operating profits, wherever that may occur.  Another consideration is how early a company is in its profit cycle. At this point in the market cycle, there are certainly sectors in which the majority of profi...