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If you're the CEO of a publicly traded company, you're worried about quarterly returns.

In a world where companies increasingly know about their business in real time, it makes no sense that public reporting mostly follows the old quarterly schedule. Companies sit on vital information until reporting day, at which point the market goes crazy.

What we do is we test what works on Wall Street. And sometimes it is earnings momentum, and sometimes it's earnings surprises. Sometimes it's price-to-sales cash flow, and then we put together our stock selection models.

We've grown from 18% of the profits of the top 25 companies in our industry to 23% of the profits of the top 25 companies in our industry over the last five years. Profits are up over 70%, where the industry profit is up about 35%. Pretty good.

Be true to yourself, and, um, don't worry about some large companies' quarterly profit index.

The big companies are the private industry. But they're faced with a short-term need to show a profit in short-term.

Corporate executives often buy or sell shares in their companies, and stocks rarely rise or fall significantly when those transactions are reported.

With a private company, you've got to get into who's investing and what's the balance sheet like. So going public is a positive thing from the perspective of the sales organization.

Sometimes it takes longer to create value, but if the companies generate more earnings, the stocks will ultimately reflect that.