Continuous outperformance: Uncertainty in the 3rd dimension of value creation?

Continuous outperformance: Uncertainty in the 3rd dimension of value creation?

In this post, I try to reconcile how (i) current expectations of future value creating activities in companies should be relatively well understood by the market, and (ii) the fact that the stocks of high-performing companies can continue to in a persistent manner outperform the market. I reflect upon why value is created when applying the same ideas of a company's EVA over time, and what it says about our view on companies in the long run.