RECENT NEWS
SeekingAlpha  19 min ago  Comment 
By Shock Exchange: Picture: From the movie "Trading Places" Sirius XM Holdings (NASDAQ:SIRI) is expected to announce its Q2 earnings on Tuesday. The company currently trades at over 60x earnings, despite the fact that Sirius is no longer a...
SeekingAlpha  2 hrs ago  Comment 
By The Part-time Investor: One of the essential components of Dividend Growth Investing (DGI) is the reinvestment of the dividends. This reinvestment is one of the two parts of the double compounding that makes DGI so effective over the long term...
SeekingAlpha  Jul 24  Comment 
ByAbba's Aces: I recently sold Kodiak Oil & Gas Corp (NYSE:KOG) from my growth portfolio because it caught a bid from Whiting Petroleum (NYSE:WLL) and I wanted to add shares of Monster Beverage Corp (NASDAQ:MNST) to the portfolio. Monster, through...
SeekingAlpha  Jul 23  Comment 
By Chuck Carnevale: Introduction Conventional wisdom and general opinion suggests that retired investors should be more conservative with their portfolios than younger investors. Therefore, their portfolios should contain only the highest...
SeekingAlpha  Jul 22  Comment 
By Brad Kenagy: In this article, I will be looking for small-cap dividend growth companies that are owned by hedge funds. For my search, I will be looking at the holdings of two ETFs, a dividend growth ETF, and a small-cap hedge fund ETF. For the...
SeekingAlpha  Jul 22  Comment 
By Stephanie Chung: Priceline (NASDAQ:PCLN) first came to my attention when Stock Rover CEO Howard Reisman chose it as one of his Top 5 large cap growth stocks (as mentioned in my previous article). In fact, it lands in second place when applying...
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...




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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