Margins, how much should they matter?
I always think the thing that matters most is earnings, and future earnings. Companies with wide margins tend to have much higher multiples. It makes sense because there is more room for error.
However, if a company has margins of 10%, and it sees a way it can expand its earnings by 50% but in order to do so this additional expenditure would only have margins of 2%...wouldn't you want that as a shareholder? Double my earnings, I don't care what the margins are.
How important are margins for you?