RECENT NEWS
The Economic Times  3 hrs ago  Comment 
Initiating its coverage on the stock, Morgan Stanley said that SKS Microfinance is a high growth stock in a nascent industry.
Dividend Growth Investor  Aug 28  Comment 
Imagine that you are the CEO of a major corporation, which is sitting on a lot of cash. You are desperate to find some use for this cash, in order to justify a bigger bonus for yourself, and in order to grow the company you are managing. One of...
Forbes  Aug 26  Comment 
John Barr: We manage the Needham Growth, Aggressive Growth, and Small Cap Growth funds. We focus on domestic growth equities -- but at a reasonable price. Our objective is to create wealth for long-term investors.
SeekingAlpha  Aug 25  Comment 
By Canadian Dividend Growth Investor: Recently, I had a chat with my friend about stocks. I told him I bought Gilead Sciences (NASDAQ:GILD) recently. His response to my surprise was, "It's so expensive! It costs $10,000!" Further conversation led...
Market Intelligence Center  Aug 25  Comment 
After the market spends a month or so treading water, it is tempting to start re-evaluating old recommendations, but perhaps that is the worst thing one can do. A level market provides only the barest illusion of stasis – new developments emerge...
SeekingAlpha  Aug 23  Comment 
By David Hernandez: FireEye, Inc. (NASDAQ:FEYE) is a provider of cyber security solutions. Their solutions are used in the detection of unknown, highly sophisticated malware, and persistent attacks. Management has been rapidly growing operations...
SeekingAlpha  Aug 22  Comment 
By Gary Gordon: Have you studied the history of stocks in the U.S.? Most people are aware of the crash in 1929 as well as the capital depreciation that occurred through 1932. Yet many may not be aware of the government stimulus in 1933 that helped...
SeekingAlpha  Aug 22  Comment 
By Mike Nadel: Before buying any company, I spend plenty of time looking at the famed "CCC" list. All Dividend Growth Investing practitioners should do likewise, with this caveat: Most CCC newcomers have experienced only the heady times of this...
SeekingAlpha  Aug 21  Comment 
By Paulo Santos: In a previous article, I explained how MusclePharm (OTCQB:MSLP) was so massively undervalued when compared to another growth stock, in that case, Twitter. The same conclusion would be reached if we compared MusclePharm to many...
SeekingAlpha  Aug 20  Comment 
By Dividends4Life: We have all heard it... Stodgy, for old people, yawn, boring! These have all been used to describe investing in dividend growth stocks. Nevertheless, I am a firm believer in dividend growth stocks for building a bullet-proof...




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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