Growth Investing

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DEFINITION of '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 EXPLAINS 'Growth Investing'

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.

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  2. What are some of the most popular mutual funds for investing in the metals and mining ...

    Mutual funds are one of the many investment options available for growth investors looking for a portfolio that includes ... Read Full Answer >>
  3. What does it mean if a share's market value is significantly higher than its book ...

    If a share’s market value is significantly higher than its book value per common share, this usually indicates investors ... Read Full Answer >>
  4. What is the forest products sector?

    The forest products sector is comprised of companies involved in growing, harvesting and/or processing wood and wood fiber, ... Read Full Answer >>
  5. Is the railroads sector appropriate for a growth investor?

    The railroads sector is a subset of the transportation sector, which is a group of stocks that relates to the transportation ... Read Full Answer >>
  6. How can growth investors benefit from investing in the oil & gas sector?

    The value of a company’s stock is typically determined by supply and demand. However, stock prices from oil and gas exploration ... Read Full Answer >>
  7. I've heard some "market gurus" claim returns of up to 400% annually. Is this possible?

    To answer your question in a word: No! Although we wish such a phenomenal investment system were real, the claims you speak ... Read Full Answer >>
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