TLDR? Investors like to think about a firm growing its earnings, but less often pay attention to the costs of expansion of company operations. The costs of expansion are both direct and indirect. Direct costs are represented in the form of debt, common equity and preferred equity. Indirect costs are represented in the form of opportunity costs. The wise investor looks at costs of expansion as a consideration in their analysis. Hey everyone, hope you enjoyed our previous post on the positions we carry in our portfolio here at MyMoneyWhat. I hope our portfolio gives you some ideas about the firms that you might want to consider. However, what’s more important is to pay attention to how we structure the portfolio. As a general guide, within our portfolio, there are going to be some firms there that will explode