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Thomas Rowe Price Jr.'s Principles

Overview

Often called the father of growth investing.

Style

Earnings growth, lifecycle of companies, long-term compounding

Firm

T. Rowe Price

Period

1898-1983

Thomas Rowe Price Jr.

Principles

Repeatable rules that beginners can study and adapt.

Applicable principles

Focus on companies in favorable growth phases.

Valuation must be judged alongside growth durability.

Watch when a company matures or declines.

Compounding requires time and management quality.

Turn these principles into a pre-investment checklist. If an idea cannot pass the checklist, staying out is often better than forcing action.