Prime growth stocks should meet all or most of the following characteristics:
1) A dominant position in a growth industry.
2) A long record of rising earnings and high profit margins.
3) Superb management.
4) A commitment to innovation and a good research program.
5) The ability to pass on cost increases to the consumer.
6) A strong financial position.
7) Ready marketability of the stock.
8) Relative immunity to consumerism and government regulation.
*Source: Preserving Capital by John Train, Clarkson N. Potter Publishers, 225 Park Ave. S., New York 10016.
