Forbes  Sep 1  Comment 
For many investors, deciding between investing in value stocks or growth stocks can be a tough decision. That’s because investors frequently are swayed by their emotions and growth stocks are typically more likely to capture the imagination than...
Yahoo  Aug 29  Comment 
“Mad Money” host Jim Cramer’s revealing the high growth stock he’s got his eye on.
Market Intelligence Center  Aug 28  Comment 
The last few weeks have severely tested the mettle of even the strongest investor. One minute the market was in a comfortable limbo, lulling investors to sleep... and the next, WHAM! Much has been written about the knee-jerk drop of the so-called...
MarketWatch  Aug 24  Comment 
Growth stocks have been beating value stocks for the last six years or so. Does the market rout herald a shift? Probably not, says Morgan Stanley.  Aug 21  Comment 
NEW YORK (TheStreet) -- For every $5 decrease in Twitter's share price since $50, it seems as though there has been a chorus of bulls exclaiming that now is the time to get into the stock. Relative to its all-time high of $74.73 a share, $50,...


Overview: Growth investing is the philosophy of investing in a security that shows signs of above-average earnings growth as compared to its industry or the overall market, even if the security appears expensive from a price-to-earnings or price-to-book perspective.

Theory: In addition to above average earnings growth, the theory behind growth stock investing, as opposed to value investing, is that stocks breaking into new price highs have no overhead supply. Because there is no overhead supply with stocks breaking into new price highs, the stock runs into less resistance. [1]

People: William O'Neil, who is recognized as the father of growth stock investing[2] dubbed this phenomenon the "Great Market Paradox". O'Neil in his book "How To Make Money In Stocks" claims to have researched the greatest winning stocks, and developed the "CAN SLIM" system that is largely the basis of growth stock investing.

This style of investing is also called capital growth investing since growth investors seek to maximize capital gains, not income from dividends. Companies that generally fall under this category tend to be driven by new technologies and/or domination of a niche market.

Notable proponents of this strategy include Philip Arthur Fisher, Jim Slater, Peter Lynch and Warren Buffett, although the latter has often maintained that there is no theoretical difference between value investing and growth investing.

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