RECENT NEWS
Forbes  Jul 20  Comment 
All-time high stocks scary? They can be winners in this market, especially when company has growth catalyst.
The DIV-Net  Jul 19  Comment 
I first started investing back in January 2010. I had NO IDEA what I was doing. I deposited $5,000 into my brand-new Scottrade account and got busy right away. I honestly don’t know what came over me, because I’m typically the type of person...
SeekingAlpha  Jul 14  Comment 
By Sigourney B. Romaine, CFA In this stock screen, we set out to find equities that have underperformed the broader market averages by a wide margin over the past three months, yet still command relatively high valuations and have shown solid...
SeekingAlpha  Jul 11  Comment 
By G7 Research Group: Introduction Motorola Solutions (MSI) looks overvalued for three key reasons. First, the company, already struggling to generate growth in a mature industry, will become fully dependent on its government business after...
SeekingAlpha  Jul 9  Comment 
By Adam Aloisi: In this era of ZIRP, there has been a gravitation towards stocks as an income investment solution. In my estimation, it has been mostly mindful gravitation, since yields available in typical income avenues - bonds, CDs, and other...
SeekingAlpha  Jul 8  Comment 
By Shock Exchange: During the height of the financial crisis I had a chance to take a flyer on Sirius XM Holdings (SIRI) for cents on the dollar, but passed. I'm kicking myself now. The company has come back from the brink, generating top line...
SeekingAlpha  Jul 7  Comment 
By David Crosetti: Introduction: I have to admit, sometimes when I read articles on Seeking Alpha, I find that the comment stream can be even better than the actual article (my own articles included.) In a recent article, there was one...
The DIV-Net  Jul 5  Comment 
I view the construction of a portfolio of high-quality dividend growth stocks as a lot of fun, and something of an adventure all in itself. Now, I’ve made my fair share of mistakes over the years, and I’ll likely make many more before I’m...
Dividend Growth Investor  Jun 30  Comment 
In the past week I added to my position in a dividend growth stock I have been following for one year. This dividend achiever has managed to increase dividends for 11 years in a row. What is really surprising is that the company has managed to...
Forbes  Jun 30  Comment 
Bubbles? No. Over-priced securities? Yes. Here's why, the trouble coming and what to do about it.




RELATED WIKI ARTICLES
 

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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