Super Performance: Stocks Richard Love Pdf =link=
A stock's "float" is the number of shares available for public trading. Love observed that super performance stocks often possessed relatively tight floats. When a company with a small supply of shares experiences a sudden surge in institutional demand, the laws of supply and demand dictate that the stock price must adjust violently upward. He also looked for meaningful insider ownership, ensuring management's incentives aligned with shareholders. 5. Industry Tailwind and Innovation
: The best "superperformance" opportunities arise when fiscal and monetary policies are stimulative, such as during periods of lowering interest rates.
By studying every major stock that met this criterion between 1962 and 1976, Love and his research team set out to discover what common denominators they shared. The result was a blueprint for identifying future multi‑baggers before they become household names.
Richard Love’s (1977) remains a foundational text for growth investors, famously cited by legendary trader Mark Minervini . The book defines a "superperformer" as a stock that at least triples in price within a two-year period, often fueled by a specific set of fundamental catalysts and broader market cycles. 📈 Core Principles of Superperformance
If you are looking to scan the modern market using Richard Love's philosophy, your stock screener should look for the following criteria: super performance stocks richard love pdf
Mark Minervini’s SEPA (Specific Entry Point Analysis) methodology utilizes the exact Stage 1 to Stage 2 transition outlined by Love. Minervini’s focus on buying stocks as they emerge from tight, low-volume technical bases is a direct modernization of Love's core technical entry criteria. How to Apply Love's Principles in the Modern Market
To help you apply these principles to your current portfolio, let me know:
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Superperformance Stocks Richard Love (1977) outlines a strategy for individual investors to identify stocks capable of at least tripling in price within two years A stock's "float" is the number of shares
Super performance rarely happens in a vacuum. It requires a spark. Love categorized these sparks into what he called "New" factors:
: The full text is occasionally available for digital borrowing via the Internet Archive .
This leads to a counter-intuitive conclusion: The best time to get ready for superperformance stocks is when the market looks its worst.
: Relatively low but increasing (implying the big funds are just starting to discover the stock). He also looked for meaningful insider ownership, ensuring
Moreover, Love observed that the monetary and fiscal environment plays a critical role. Lowering interest rates and fiscal stimulation are positive for stocks, creating the ideal environment for superperformance stocks to thrive. Conversely, rising interest rates and fiscal tightening make it much harder to find stocks with large upside potential.
Super performance stocks almost always start their journeys as relatively small companies.
Inventions that disrupt existing industries or create entirely new ones (e.g., the television in the 1950s, the personal computer in the 1980s, smartphones in the 2000s).
In 1977, investors had to manually parse through chart books and physical financial ledgers. Today, you can filter thousands of stocks instantly using tools like Finviz, MarketSmith, or TradingView. Set your screeners to look for: Under $5 Billion (Small to Mid-Cap). EPS Growth (QoQ): Greater than 25% or 50%. Sales Growth (QoQ): Greater than 25%.
The tickers have changed, but the structural mechanics of a Super Performance Stock remain entirely uncompromised. Consider how the monster winners of recent years—such as —fit Love's paradigm perfectly before their historic runs: Richard Love's 1977 Criteria Modern Application Case Study Earnings Acceleration