Growth Investing
InvestingGlossary term
Definition
An investment strategy that targets companies expected to grow revenue and earnings at above-average rates, even if their current stock price appears expensive. Growth investors focus on potential future value rather than current metrics like dividends or low P/E ratios.
Related terms
- Growth StockStock in a company expected to grow earnings faster than the market average. Typically reinvests profits rather than paying dividends. Higher potential returns but more volatile.
- Value InvestingA strategy of buying stocks that appear undervalued relative to their intrinsic worth based on fundamental analysis. Pioneered by Benjamin Graham and Warren Buffett, it focuses on companies trading below their book value or with low P/E ratios.
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