Growth Investing
A strategy whereby an investor seeks out stocks with what they deem good growth potential. In most cases a growth stock is defined as a company whose earnings are expected to grow at an above-average rate compared to its industry or the overall market. Investopedia Says:
Growth investors often call growth investing a capital growth strategy, since investors seek to maximize their capital gains.
Although it is often said that growth investing and value investing are diametrically opposed, a better way to view these two strategies is to consider a quote by Warren Buffett: "growth and value investing are joined at the hip". Another very famous investor, Peter Lynch, pioneered a hybrid of growth and value investing with what is now commonly referred to as a "growth at a reasonable price (GARP)" strategy. Related Terms:
Growth At A Reasonable Price - GARP
Growth Company
Growth Fund
Growth Rates
Long-Term Growth
Price-Earnings Ratio - P/E Ratio
Value Investing
Value Stock
Warren Buffett |