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What Is Growth Investing ? |
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Answer» A popular investment style whereby fund MANAGERS identify companies showing PROMISE of above-average earnings. Stocks are held primarily for price appreciation as opposed to DIVIDEND income. Growth investors (or managers) are willing to pay a premium to acquire a stock if they feel it has the RIGHT prospects. Growth investing is an alternative to value investing. For instance, BUYING an over-valued software stock would be the part of a growth manager’s investment strategy. A popular investment style whereby fund managers identify companies showing promise of above-average earnings. Stocks are held primarily for price appreciation as opposed to dividend income. Growth investors (or managers) are willing to pay a premium to acquire a stock if they feel it has the right prospects. Growth investing is an alternative to value investing. For instance, buying an over-valued software stock would be the part of a growth manager’s investment strategy. |
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