If you are a business leader, you should always be skeptical of all growth. It’s not to dismiss growth, but growth for the sake of growth can be detrimental to a business. Expansion for the sake of expansion should always be viewed with skepticism. Not all growth is quality growth.
The saying often goes; ‘progress is not linear.’ And rightly so, there’s no place in the world where you find straight-line growth. Stocks (quality stocks) do not grow in this manner. Our human cells do not grow in this manner. All quality growth takes on an aspect of creative destruction. Quality growth tends to replicate a sinusoidal format. It has highs and then corrections (the dips).
Yet business leaders continue to commit the same mistake when it comes to growth. They are blinded by all manners of growth. They expand for the sake of expansion. Not to say that there’s something wrong with Stabex, but it’s to point out that the Stabex kind of expansion raises questions. This kind of growth appears artificially inflated and not reflective of the market realities.
Businesses should always strive for both quantitative and qualitative growth. Qualitative growth will always have corrections. Few businesses have the ability to open up two branches in a space of weeks. Every investor should get worried by these kinds of expansions. Progress is not linear, it has detours, if a business shows no detours, it’s defying the rule of qualitative growth.