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Successful companies generate new sales. We like our portfolio investments to have accelerating top-line growth, with year after year of booming revenues.
We don't worry too much about valuations or earnings multiples. Often the best companies will command a high multiple throughout their growth trajectory.
In that light, consider the following. Nvidia's results were out last night and their quarterly sales tripled from a year ago. Nvidia chips support almost all of these new AI systems, so they racked up sales of $22.1 billion. That's damned impressive!
Net profit was $12.29 billion, compared with just $1.41 billion a year earlier. Incredible! No wonder the share price went from $230 to almost $750 per share over the same period.
