TWLO - 5 Common Mistakes In Evaluating High-Growth Companies
Investing in the right high growth businesses can create transformational wealth. Yet, the journey isn't made easy. The stocks are volatile and their profiles look different compared to more established businesses. Investors commonly trip up on a couple of key things. I've made several of these errors when assessing growth businesses in the past myself.
Mistake #1 : This stock has already gone to the moon, it can't keep going up
As investors, we often underestimate to what extent strongly growing businesses with sustainable growth characteristics and competitive advantages can keep increasing. I myself have