The market is obsessed with earnings, but unfortunately the wrong kind of earnings: the short-term kind. This piece is in no way an attempt to defend the bizarre quarterly ritual where even large and stable companies’ share prices oscillate wildly based on the last 90 days’ trading and managements’ often inaccurate views on the prospects for the next 90 days. It is more an attempt to concentrate on the longer-term earnings paths and the importance of holding up in tough times for long-term compounding.

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Morgan Stanley IM: It’s All About The Earnings - The Long-Term Earnings