There are many different investment strategies to choose from. Growth investing is one of the more popular ones. It’s the most obvious strategy based on its goals. You guessed it…growth, specifically, growing companies. It follows that growing companies tend to outperform the market, but not every growing company qualifies.
What is Growth Investing
A growth investing strategy looks for companies with consistent, above average earnings and revenue growth. In turn, growth investors are willing to pay a premium for a stock now, because they believe the company will grow faster in the future. This leaves growth companies with a higher P/E ratio. Basically, growth investors are willing to pay a higher price (P) now, for long-term future earnings growth. Continue Reading…
We’re drawn to the idea of a safe investments because nobody likes to lose money. Over the past few years investors have turned to bonds, income stocks, and gold for safety. It paid off until now, because safe investments don’t last forever.
Investing is full of ways to make money. Yet, despite what you may have heard, there are no safe investments. Anything you put your money into has risks. Whether its stocks, bonds, real estate, a business, and even your savings account, it pays to understand the different types of investment risk involved in anything before putting your money to work.
Index funds are the most popular investment product used today. Most of those funds are based on a market cap weighted index.