Munro is focused on growth
Munro identifies sustainable growth trends that are under-appreciated, not well understood and mis-piced by the market, and the resulting winning and losing stocks.
As experts in the space, Munro leverages its global access and prides itself in identifying key “Areas of Interest” (AoIs) and 2nd and 3rd derivative trends often over looked by markets. Our proprietary research process then quickly identifies key winners / losers, quantifies upside / downside and time to price target.
The philosophy is based on three overriding principals:
1. Earnings growth drives stock prices
Companies that consistently earn more than the year before are generally rewarded with higher stock prices over time.
2. Sustained earnings growth is worth more than cyclical earnings growth
Consistent growth, independent of cyclical factors and above the peer group, is generally valued at higher multiples than otherwise.
3. The market will often misprice growth and its sustainability
Consensus earnings estimates often underestimate growth, while pegging to market multiples will often underestimate the sustainability and cash generation capacity of that growth, allowing opportunities to invest in stocks well below their intrinsic value.