The Guide to Superperformance Stocks by Richard Love Published in 1977, "Superperformance Stocks: An Investment Strategy for the Individual Investor Based on the 4-Year Political Cycle" by Richard S. Love remains a foundational text for growth investors. The book outlines a specific criteria for identifying "superperformance" stocks—those that at least triple in value within a two-year period.
While physical copies can be rare, many investors seek a digital PDF of Superperformance Stocks through platforms like Internet Archive, Scribd, and SlideShare to study Love's evergreen principles. Defining a Superperformance Stock
Richard Love used a rigorous, quantitative definition to isolate the market's biggest winners:
Price Appreciation: The stock must at least triple (300% gain) within two years.
Relative Strength: It must increase at a rate at least three times that of the general market during its move.
Termination Criteria: A "superperformance move" is considered over if the stock fails to reach a new high within six months or experiences a price reaction of 25% or more. Core Principles and Market Timing
Love’s strategy is heavily built on the interaction between company fundamentals and macro-political cycles.
The 4-Year Political Cycle: Love argues that the stock market is deeply influenced by the U.S. presidential cycle. Prices tend to be strongest in the two years leading up to an election and weakest immediately following one.
Safety Through Timing: Love asserts that "safety" in investing is derived from good timing rather than just financial strength. Even the strongest corporations can see their stock prices collapse during general market declines.
The Bear Market Opportunity: The most abundant "superperformance" opportunities occur after a severe market correction or bear market, when stocks are available at deflated, bargain prices. Key Characteristics of Winning Stocks super performance stocks richard love pdf
Love identified several "common denominators" among stocks that achieved superperformance status:
In his 1977 book, Superperformance Stocks: An Investment Strategy for the Individual Investor Based on the 4-Year Political Cycle, Richard S. Love defines a "superperformance stock" as one that at least triples in price within a two-year period. Amazon.com
His core thesis is that explosive stock price movements are not random but are driven by a predictable intersection of company-specific catalysts and broader political and economic cycles. Amazon.com Key Concepts and Investment Strategy
Richard Love’s strategy centers on identifying stocks with high price volatility and strong underlying growth, then timing entries based on the U.S. presidential cycle. Amazon.com 1. Identifying Superperformance Characteristics
Love identifies several common denominators for stocks that are likely to triple or more: Earnings Acceleration:
This is the most critical factor. Love looks for large, often surprising increases in earning power. Company Catalysts:
Major shifts such as new management, innovative product launches, or mergers and acquisitions often serve as the spark for a massive run. Price Volatility:
Stocks with a history of significant price swings are often better candidates for the extreme moves he seeks. Expandable P/E Ratios:
Identifying stocks where investors are willing to pay a higher multiple over time as growth expectations rise. Amazon.com 2. Timing and the 4-Year Political Cycle The Guide to Superperformance Stocks by Richard Love
Love argues that market environment is just as important as individual stock selection. Google Books Political Influence:
He observes that stock markets tend to be strongest in the two years leading up to a presidential election and weakest immediately after, as governments often stimulate the economy to ensure prosperity for voters. Bear Market Opportunities:
The safest and most profitable time to buy is often when the market looks like a "disaster." He advocates buying during severe market corrections or at the bottom of a bear market. Monetary Policy:
He closely tracks Federal Reserve actions, noting that lower interest rates and fiscal stimulation create the ideal environment for superperformance stocks to thrive. Ivanhoff Capital 3. Selling Criteria
Love defines the end of a "superperformance move" by specific technical triggers:
Failure of the stock to reach a new price high in less than six months. A price reaction (pullback) of 25% or more from its peak. Amazon.com Availability of the Work
While the original 1977 publication can be difficult to find in print, digital copies and summaries are available through various sources:
Since the book was published in the late 1970s (1977), it is often overshadowed by more modern classics like William O'Neil's How to Make Money in Stocks. However, among serious market technicians and historians, it is considered a hidden gem.
Here is a breakdown of the book's core concepts, its strengths, and why it remains relevant today. Part 7: Limitations of the Richard Love Method
No strategy is perfect. While looking for the "Super Performance Stocks Richard Love PDF," investors must be aware of the blind spots:
Use the PDF as a starting screen, not a final buy order.
The internet is full of paid gurus selling "secret" PDFs. However, the quest for the Super Performance Stocks Richard Love PDF is different. It represents a search for intellectual discipline.
Whether you find the actual document or simply follow the distilled methodology, you will immediately stop buying "story stocks" (great narratives, terrible ROIC) and start buying "math stocks."
To operationalize these theories, Love provides a screening framework for the modern investor:
Richard Love's 1977 book, Superperformance Stocks, outlines an investment strategy designed to identify stocks that triple in price within two years, based on the 4-year U.S. political cycle. The approach emphasizes buying during market lows, timing to political cycles, and identifying companies with sudden, large accelerations in earnings. Access the work for digital borrowing at Internet Archive.
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Because the book is protected by copyright and out of print, unauthorized PDFs circulating on forums or file-sharing sites are illegal copies. However, legitimate avenues include:
While geometry provides the timing, Love emphasizes that the fuel for any super performance stock is fundamental earnings growth. However, Love moves beyond the standard Price-to-Earnings (P/E) ratio analysis.
3.1 The Requirement of Growth Love stipulates that a Super Performance stock must have a substantial growth rate. He looks for companies where earnings are accelerating. This is a critical distinction from value investing, which seeks low P/E ratios. Love argues that a stock with a low P/E often deserves it due to stagnation; conversely, a Super Performance stock often has a high P/E because the market has not yet priced in the magnitude of future growth.
3.2 The "O" Factor (Ownership) A pivotal concept in Love’s framework is the "O" factor—Ownership. He posits that for a stock to multiply in value, it requires sustained buying power, typically from institutional ownership (mutual funds, pension funds, hedge funds).