Growth investing - Financial definition
Concise definition of the term growth investing
Growth investing is an investment strategy focused on purchasing stocks that are expected to grow at an above-average rate compared to other companies.
Comprehensive definition of the term growth investing
Growth investing involves identifying companies with potential for significant earnings expansion, often characterized by high revenue growth, strong profit margins, and innovative products or services. Investors in growth stocks typically seek capital appreciation rather than dividend income, and they often focus on sectors such as technology, healthcare, and consumer discretionary. This strategy contrasts with value investing, which targets undervalued stocks. Practical examples include investing in rapidly growing tech companies like Tesla or emerging biotech firms, with the goal of benefiting from their anticipated future growth.