This column offers something different. I frequently discuss what makes mutual funds tick, but never so about companies. Doing so would be presumptuous. I have never been an equity analyst, nor I have ever run a business. But today’s article is a one-time exception. It lists what I believe to be the most important attributes of emerging companies, the keystones of future growth.
These principles come from close observation of a single undeniably successful startup: Morningstar (MORN). When I joined the company in 1988, it had $1 million in revenue. Last year, it reported $1.02 billion. Adjusted for inflation, that makes for a 22% annualized revenue growth rate. Good work if you can get it!
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John Rekenthaler has a position in the following securities mentioned above: MORN. Find out about Morningstar’s editorial policies.