Investment Strategies - by R Ambrose

Growth Investing

Growth investors look for companies that are growing and will continue to grow quickly. They are less concerned about companies that have high price/earnings ratios as they expect that as the company rapidly grows its earnings will also rise quickly, which will reduce the price/earnings ratio in the future.

Growth investors can often ignore the fundamentals of a company, paying far more than a value investor would think sensible. They are hoping that the earnings growth of the company will justify the price they paid, but there is more danger that prices could fall a long way if the company does not meet the market's expectations.

<<Previous   Home   Next>>

---

Disclaimer : Please note that these articles do not necessarily represent the views of UK Share Net. The views expressed are those of the authors. The price of shares can go down as well as up. No infringement of copyright is intended, any offending articles will be removed as soon as possible when notified.