David Polen Rational Growth Strategy

This strategy represents an upgrade of David Polen's classic growth framework. It retains a strict screening of large-cap blue chips with quality free cash flow, while transforming the holding criteria to avoid overpaying for growth. Traditional strategies tend to buy and hold for the long term, which ignores the risk of holding overpriced stocks. The core idea of this strategy is that price is probability based. By quantifying the expected annualized return of each enterprise, it enforces a discipline of selecting the best of the best. This means that even if a company remains excellent, once its valuation becomes too high and expected returns fall, the strategy decisively replaces it with comparable high-quality assets that are undervalued by the market. This dynamic cost-effective rotation essentially builds a buffer for this growth strategy.