If we are right, the new AOL Time Warner will rise again in a major way because of the vision its leaders have shown. Meanwhile, given the gigantic cashflow from Time Warner's magazines and cable operations, the company is closer than before to being an income stock. W e like names in finance and healthcare because we expect those sectors to prosper as the baby boomers age. While we cannot foretell the future, we try to look at the windshield rather than the rearview mirror. A t times we invest in young, fast-growing industries such as biotech and telecommunications, and, as individual stocks, these investments come with major risks and are different G names rather than GI stocks.
Success begets further success.
The best companies attract the best people and the biggest investments. At the same time, we recognize the existence of disruptive technologies and will not take any company's status for granted. We would like to see top and bottoms lines increasing at least 10-15 percent a year. PEGs themselves can very considerably. Gross margins of at least 50 percent and profit margins greater than 10 percent.