This leads to a counter-intuitive conclusion: The best time to get ready for superperformance stocks is when the market looks its worst.

According to Love, super performance stocks typically exhibit certain characteristics, including:

Love offers a structured approach to identifying these stocks, emphasizing that while fundamentals are crucial, timing is essential. 1. The "Under-Valued" Metric

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His work became a cornerstone for quantitative and qualitative growth investing. It proved that massive stock market winners are not random anomalies; instead, they follow highly predictable, recurring patterns before their explosive breakouts occur.

Love posited that the financial markets are heavily influenced by the political and monetary policies enacted in Washington. He observed that fiscal policy, interest rates, and money supply were manipulated by incumbent administrations seeking re-election. Therefore, the stock market generally follows a distinct 4-year rhythm:

Love's work heavily influenced subsequent generations of traders, including , who trademarked "Specific Entry Point Analysis" (SEPA) and wrote his own guide to achieving superperformance. Whether studying the original 1977 text or modern interpretations, the core lesson remains: finding "superperformance" requires a disciplined blend of fundamental excellence and precise technical timing.

While not a hard‑and‑fast rule, Love observed that most superperformance stocks were quite small in terms of float and market capitalization at the start of their moves. Smaller companies have more room to grow and can multiply many times over before becoming too large for institutional investors to ignore.

Super performance stocks almost always start their journeys as relatively small companies.

I can write a substantial review of "Super Performance Stocks" by Richard Love (PDF). I’ll assume you want a critical, in-depth review covering summary, strengths, weaknesses, investment methodology, evidence, readability, target reader, and final recommendation. I'll not reproduce or link to the PDF.

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.

He observed that in the years leading up to a presidential election, incumbent administrations typically employ fiscal and monetary policies designed to stimulate the economy, creating a favorable environment for stocks. Conversely, after an election, policies might tighten. Love's groundbreaking insight was that an individual investor could use this predictable cycle to time their entries into the market. The best opportunities for superperformance stocks, he argued, often emerge after a severe market correction or a bear market, when these political tailwinds are about to shift in the investor's favor. The lowering of interest rates and fiscal stimulation create the fertile ground in which these high-potential stocks can thrive.