What I do not understand is how to gauge future growth, especially after the recent recession affecting the market as whole. I am looking at energy/utilities stocks and what’s interesting to me is while it is predictable that China/India/Brazil would certainly grow, it’s harder to tell for U.S. companies where the economy or rather the industries are more or less leveling off after growing as a financial superpower for the past 20 years.

It would be great if you could post more about gauging future growth, how to determine it, etc… in detail.

So what is your alternative to using EPS, revenues etc? I think that financial stements represent accurately part of the picture. But if you bother to read an annual report, then you can gain a better understanding of the broad picture.
Another positive for TDG’s process is that he is buying companies that have managed to pay out increasing dividend checks to shareholders for several decades. EPS could be manipulated, but cash cannot be created out of thin air.