Growth stocks naturally tend to command premium valuations to reflect their attractive earnings profile. While growth lasts, all is well. Any unexpected halt, however, can be painful as investor expectations are reset. Using Tesco as an example, this White Paper attempts to demonstrate how long-term investors can spot a future stall in order to sell out in time.

As ‘quality-growth’ investors we apply a long-term-oriented investment approach, which relies on companies’ fundamental value creation, i.e., earnings development, as the determinant share-price driver.