Valuation expansion, not earnings growth, has driven most of the S&P 500’s gains since 2022. In this episode of Inside Active, hosts David Cohne, mutual fund and active management analyst with Bloomberg Intelligence, and BI’s Chief Equity Strategist Gina Martin Adams speak with David Giroux, chief investment officer of US equity at T. Rowe Price and a portfolio manager for the Capital Appreciation strategy. Giroux shares why internal rate of return projections guide his stock selection, the critical importance of avoiding companies with fatal flaws and how counter-cyclical actions historically boost performance. They also discuss private investments, bonds and why independent thinking is essential for long-term investment success. The podcast was recorded on July 21st.