Growth Investing
Growth Investing
Growth Investing is a tactic where investors invest in smaller or rapidly growing companies, thereby increasing their capital 🤑
This is a smart strategy if the company does well. But since there isn't much of a track record, the risk is also quite high. Understanding which companies have a good chance of doing well needs a fair bit of research on markets, their history and understanding what professional analysts think is going to happen with that market sector.
Historical earnings growth, forward earnings growth, profit margins, return on equity and stock performance are some factors investors consider before investing in such companies. Usually such companies are found in the fastest growing industry sectors.
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