RECENT NEWS
SeekingAlpha  12 hrs ago  Comment 
By Financial Sense: by Chris Puplava The markets were down big this week, with much of the profit-taking in high growth stocks and popular momentum names. Given our warnings over the past two months (see archive), readers should not be...
The Economic Times  Apr 11  Comment 
Selling accelerated in US stocks on Friday as a lousy week came to a close, with biotech and tech shares again leading the Nasdaq lower.
SeekingAlpha  Apr 11  Comment 
By Regarded Solutions: Some investors call dividend growth investing a cult like approach. While many more investors these days see dividend income as a sound strategy to create wealth as well as cash flow, it is far from a cult. As a matter of...
SeekingAlpha  Apr 11  Comment 
By George Kesarios: You can't say I haven't warned you about the entire 3-D space. Yesterday, the entire 3-D complex got crushed once more. 3D Systems (DDD) closed down 10.8%, ExOne (XONE) was lower by 7.62%, Stratasys (SSYS) fell by 11%, and...
SeekingAlpha  Apr 11  Comment 
By Jeffrey Dow Jones: I've been working on a new research tool for our Alpine Advisor clients. The basic idea is to screen a whole bunch of stocks, and use a special formula to weight multiple valuation metrics alongside some growth metrics. Then...
SeekingAlpha  Apr 9  Comment 
By David Crosetti: Introduction: Recently there seems to be a lot of discussion about "total return" investing and how more investors should be focused on "total return" as a guiding principle to their investment strategies. Some of the...
Forbes  Apr 9  Comment 
“They” are at it again, trying to trip up our investment plans. A deluge of articles warns that “momentum” investing (i.e., investors chasing performance) created a bubble-like environment that is now popping. The conclusion? Run from...
SeekingAlpha  Apr 8  Comment 
By Michael Ranalli: This is a short and sweet rebuttal to the short thesis, which essentially argues World Wresting Entertainment (WWE) is richly valued through the lens of rear view mirror financials and management's relatively poor track record...
SeekingAlpha  Apr 8  Comment 
ByAlbert Alfonso: For long-term investors, Procter & Gamble (PG) should be considered a cornerstone stock, offering steady returns in almost any investing environment. The company has faced some issues, recently lowering its earnings outlook as a...
SeekingAlpha  Apr 7  Comment 
By George Kesarios: It's not easy to spot, because when something has been working for a long time, investors get complacent and think it will never end. For several years now growth stocks has been in style. So much so that investors have been...




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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