Archived Blog Post: February 29, 2004

General Electric: "A working paper* by Mr Skinner and Linda Myers, which looked at 399 firms with unusually smooth and consistent earnings growth, found several interesting things. One was that these companies tend to enjoy high market valuations. Another was that there was evidence that they were smoothing bumpy earnings. A third was that the run of good luck had a tendency to end in an earnings shock."

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