Growth Investing
Prioritizing stocks with strong potential earnings expansion.
Detailed Description
Growth Investing
What is the primary focus of growth investing?
The primary focus of growth investing is purchasing stocks of companies expected to grow at an above-average rate.
How do growth stocks typically behave in terms of profitability?
Growth stocks often prioritize potential earnings growth over current profitability, and many may not yet be profitable.
What are some common sectors that attract growth investors?
Common sectors include technology, healthcare, and renewable energy, which are known for their potential for rapid expansion.
What is a significant risk associated with growth investing?
A significant risk is that the anticipated growth may not materialize, leading to a decline in stock prices.
How does growth investing differ from value investing?
Growth investing focuses on potential earnings growth, while value investing seeks undervalued stocks trading for less than their intrinsic value.