Show notes
What’s harder than finding a “great company”? Figuring out whether you’re buying a great company or just the great memory of one. In this episode, Stephen and Andrew hop into a time machine and pressure-test T. Rowe Price’s 1950 Barron’s checklist for picking growth stocks—then ask what still holds up, what breaks, and what’s surprisingly timeless.
They walk through eight factors (management, R&D, competition, financial strength, ROIC, margins, regulation risk, and employee dynamics) and translate each one into modern investor language—using real-world examples like Apple, Amazon, Netflix, Coke/Pepsi, and even the gaming industry’s microtransaction “race to the bottom.”
What You Will Learn
How T. Rowe Price defined a “growth stock” in 1950—and why it’s more practical than today’s hype definition
What “management quality and employee goodwill” looks like in real life
How to think about R&D and innovation beyond buzzwords
Why “cutthroat competition” often turns into a race to the bottom—and how to spot it early
Where regulation can quietly cap returns
Timestamps
00:00 Setting the stage: the 1950 Barron’s article and why it’s worth revisiting
04:31 Growth stock definition from the article and why it’s so “eloquent”
08:59 Checklist #1: management quality, employee goodwill, insider ownership
12:50 Social trends and employee sentiment
18:53 Checklist #2: intelligent research—new products/markets and staying ahead
24:55 Checklist #3: cutthroat competition, microtransactions, CAC, race to the bottom
31:41 Checklist #4: strong finances—debt metrics and surviving adversity
34:01 Checklist #5–6: ROIC and profit margins—what still works vs. what’s dated
40:23 Checklist #7–8: regulation risk and employee pay/flexibility
Resources Mentioned
The Value Spotlight Newsletter: https://einvestingforbeginners.com/value-spotlight-newsletter/
Have questions or want your story featured? Email the show at [email protected] or comment below. Your feedback shapes the podcast!
Remember, invest with a margin of safety—emphasis on the safety. Have a great week, and we’ll talk to you next time.
Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.
Today’s show is sponsored by:
Download the Plynk app today to start building your investing confidence. https://plynkinvest.app.link/IFBpodcast
Download Cash App Today: https://click.cash.app/ui6m/0th4z72y #CashAppPod As a Cash App partner, I may earn a commission when you sign up for a Cash App account. Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Bitcoin services provided by Block, Inc. For additional information, see the Bitcoin disclosures.
Shopify: Stop waiting for permission to build something. Your next revenue stream starts for free at shopify.com/beginners
Turn your passion into profit, connect directly with eager buyers, and grow your business by hosting live, interactive auctions at https://whatnot.com/sell
Supercharge your productivity and automate your daily tasks by building custom AI agents in your all-in-one workspace at https://notion.com/investing
The Perfect Jean makes insanely comfortable, great-fitting jeans you can wear all day—check them out at theperfectjean.nyc.
Function Health helps you get ahead of your health with comprehensive lab testing and clear, actionable insights—learn more at functionhealth.com.
Interested in how your company sponsor the show? Reach us at [email protected]
SUBSCRIBE TO THE SHOW Apple | Spotify | YouTube | Amazon | Tunein
Learn more about your ad choices. Visit megaphone.fm/adchoices