Growth Investing

Filed Under » , , ,
Dictionary Says

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 Says

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.

Articles Of Interest

  1.

    Thomas Rowe Price: Always Right

    This great investor mastered a new type of investing with every new market he faced.

  2. Is Growth Always A Good Thing?

    Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble.

  3. Venturing Into Early-Stage Growth Stocks

    Picking these potential winners is all about sizing up risk. We show you how.

  4. Steady Growth Stocks Win The Race

    Take a page from the fable of the tortoise and the hare by investing in these constant growth stocks.

  5. Sell Growth Stocks The IBD Way

    Savvy investing is all about learning some smart rules and sticking to them. We give you the rundown.

  6. 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 of are preposterous. Most "gurus" are nothing more than salespeople ...

  7. The Greatest Investors

    Read about the achievements of those who have mastered the art of investing.

  8. The News About Newspaper Publishers Is Surprisingly Good

    The news about newspaper stocks is surprisingly good. Indeed, the sector that every investing pundit loves to hate has been beaten to a bloody pulp over the last few years is starting to show ...

  9. Warren Buffett: How He Does It

    We look at the Sage of Omaha's methodology for evaluating value stocks.

  10. Investing With A Purpose

    Your reasons for investing are bound to change as you go through the ups and downs of life. Setting goals is the first step in determining which investment vehicles are right for you.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Network Effect

    A phenomenon whereby a good or service becomes more valuable when more people use it. The internet is a good example...

  2. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  3. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  4. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  5. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  6. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...
Trading Center