Superperformance Stocks By Richard Love Pdf Free
Love does not use “superperformance” loosely. For him, a superperformance stock is one that rises at least 300% to 1,000% within a few years, driven not by speculation but by genuine business expansion. Unlike short-term momentum plays, these stocks exhibit durable competitive advantages, rising profit margins, and increasing return on equity. Love emphasizes that such stocks are rare — perhaps 1–2% of all publicly traded companies in any given cycle.
Richard Love's 1977 book, Superperformance Stocks , outlines a strategy for identifying stocks that gain at least 300% over two years, heavily influenced by the 4-year political cycle. The approach prioritizes timing purchases during market bottoms and identifying companies with accelerating earnings, new management, or innovative products. Access the material through the Internet Archive .
Large caps are often efficiently priced (low upside). Small caps are riskier and less liquid. Mid‑caps sit at a sweet spot where information asymmetry still exists, allowing savvy investors to capture mispricings. superperformance stocks by richard love pdf
but with a twist.
| Step | What to Look For | Why It Matters | |------|------------------|----------------| | | $500 M – $5 B (mid‑cap) | Large enough for liquidity but small enough to retain growth upside. | | 2️⃣ Revenue Growth | ≥ 15 % YoY for the last 3 years (or accelerating) | Demonstrates a product/service that’s gaining market share. | | 3️⃣ Earnings Momentum | EPS growth ≥ 20 % YoY, with positive earnings surprise in the latest quarter | Shows management can convert revenue into profit and that analysts may be under‑estimating the business. | | 4️⃣ Return on Capital (ROIC) | > 15 % (preferably > 20 %) and stable or rising | Indicates a durable competitive advantage (the “moat”). | | 5️⃣ Valuation Gap | Price‑to‑Earnings (P/E) below the 5‑year historical average and Price‑to‑Book (P/B) < 2.0 | Provides the classic “margin of safety” buffer. | | 6️⃣ Insider & Institutional Ownership | Insider ownership ≥ 5 % and institutional ownership < 30 % | Insiders have skin‑in‑the‑game, while limited institutional ownership suggests the stock is still under the radar. | Love does not use “superperformance” loosely
Published: April 10 2026
What sets the report apart is the —a systematic set of quantitative and qualitative criteria that dramatically narrows the universe of stocks to a handful of “must‑watch” candidates each quarter. Love emphasizes that such stocks are rare —
Love’s valuation checks (low P/E relative to historic average, low P/B) help protect against downside risk—a cornerstone of value investing that also works in a growth‑oriented context.
These are screened ideas only. Perform your own due‑diligence before committing capital.
– Before the internet era, Love recognized that mutual funds, banks, and pension funds must be accumulating the stock. He looks for rising ownership by top-tier institutions, not just passive index funds. However, he cautions that ownership should not exceed 60–70% of float, leaving room for new buyers.
