QonQ growth is a good indicator. I wonder though if this framework also holds true for cyclical sectors like cement and steel.Pls let me know if you have backtested this for cylical sectors also.
I wouldn’t really recommend using this for highly cyclical sectors—especially commoditized steel where prices and growth swing wildly with the cycle. Cement is a bit less so, but still not ideal.
This framework works better for steady, structural growth businesses. I should’ve clarified that in the blog!
Excellent
Thank you !
QonQ growth is a good indicator. I wonder though if this framework also holds true for cyclical sectors like cement and steel.Pls let me know if you have backtested this for cylical sectors also.
Thanks for bringing this up!
I wouldn’t really recommend using this for highly cyclical sectors—especially commoditized steel where prices and growth swing wildly with the cycle. Cement is a bit less so, but still not ideal.
This framework works better for steady, structural growth businesses. I should’ve clarified that in the blog!
Very Insightful!
Glad you liked it !