(All tickers meet the six‑step framework as of the latest data—prices are rounded.)
Richard Love's 1977 book, Superperformance Stocks , outlines a strategy for identifying stocks that gain at least 300% over two years, heavily influenced by the 4-year political cycle. The approach prioritizes timing purchases during market bottoms and identifying companies with accelerating earnings, new management, or innovative products. Access the material through the Internet Archive . superperformance stocks by richard love pdf
Love’s valuation checks (low P/E relative to historic average, low P/B) help protect against downside risk—a cornerstone of value investing that also works in a growth‑oriented context. (All tickers meet the six‑step framework as of
| Step | What to Look For | Why It Matters | |------|------------------|----------------| | | $500 M – $5 B (mid‑cap) | Large enough for liquidity but small enough to retain growth upside. | | 2️⃣ Revenue Growth | ≥ 15 % YoY for the last 3 years (or accelerating) | Demonstrates a product/service that’s gaining market share. | | 3️⃣ Earnings Momentum | EPS growth ≥ 20 % YoY, with positive earnings surprise in the latest quarter | Shows management can convert revenue into profit and that analysts may be under‑estimating the business. | | 4️⃣ Return on Capital (ROIC) | > 15 % (preferably > 20 %) and stable or rising | Indicates a durable competitive advantage (the “moat”). | | 5️⃣ Valuation Gap | Price‑to‑Earnings (P/E) below the 5‑year historical average and Price‑to‑Book (P/B) < 2.0 | Provides the classic “margin of safety” buffer. | | 6️⃣ Insider & Institutional Ownership | Insider ownership ≥ 5 % and institutional ownership < 30 % | Insiders have skin‑in‑the‑game, while limited institutional ownership suggests the stock is still under the radar. | Love’s valuation checks (low P/E relative to historic