You have probably heard financial advice in the form of phrases such as;
- “invest in companies with strong fundamentals”
- “Companies with growing cashflows outperform over time”
These phrases and other similar utterances have become ubiquitous in the financial world. They seem conservative and wise, so financial professionals know they will not get in trouble for doling out such advice.
Digging deeper, these phrases are nothing more than platitudes that reveal a particular style bias. Companies with strong fundamentals and growing cashflows feel better to invest in and most prefer to invest in this sort of