Since future earnings growth will be the primary driver of future capital appreciation and dividend income, it logically follows that forecastingfuture growth is the key to future investment success.
In addition, as Australia-based Forbes contributor Tim Treadgold pointed out, iron ore prices are falling, with both BHP and Rio Tinto forecasting lower prices in thefuture as supply rises to meet demand.
This error seems to have occurred both when Virgin was eliminated from the bidding contest, and when First Group's bid was reassessed against the Department's own forecasting model for future revenues.