What changes: growth and moats fade faster

Zoom’s 2020 boom was real; two years on, its sales were growing in single digits

−80%since the 2020 peak

$478, Nov 2020

Month-end share prices since Zoom listed in April 2019. Source: Nasdaq

Why it matters

So we judge great and cheap differently: a great company has to keep its growth and its moat for years, and a price is only cheap if the growth lasts. 20% a year for 15 years multiplies profit about 15 times; 40% for 3 years, under 3 times.

15.4x

2.7x

20% a year for 15 years40% a year for 3 years


20% a year for 15 years	15.4x
40% a year for 3 years	2.7x

How much profit grows, by speed and length

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