Growth+Investing

It is a investment strategy that investors use to invest in and focus on companies that show above-average growth rate. The theory is that growth in revenues will lead to increase in stock prices. These investors are usually looking at young companies and look at the long-term stance of the companies rather than just its current economy. The key to this strategy is to buy shares when the prices are low, hold on to them while they have above-average returns, and sell them when they start to level off and decline. This strategy is commonly contrasted with value investing.
 * What is growth investing?**

Sources: http://content.moneyinstructor.com/699/what-growth-investing.html http://www.wisegeek.net/what-is-growth-investing.htm http://www.investopedia.com/university/stockpicking/stockpicking4.asp#axzz2LJV2YByG

After having a more developed understanding of growth investing, you can watch the following videos: media type="youtube" key="8Ul0ciJOUvY" height="315" width="420" media type="youtube" key="lFcFE_jXy3c" height="315" width="420"

(From Mansfield's Money Sense)

Question: 1. What is the difference between growth investment and value investment? 2. What is the theory behind growth investment? 3. What are the characteristics that growth investors are looking for in potential companies?

by: Shradha and Adele