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Growth Investing
What?
Growth investing is done by looking at company which has high growth. In the late 1990s, when technology company flourish, this method gives very high return.
How?
This method is focusing on growth, so it will find company with high growth, high earning growth. But you must also watch other aspect, like it’s debt to equity, and ROE.
How’s the performance?
Also analysis done by many people, stock with high growth usually beat other stock in return. But you also must remember to check that company not just by looking at its growth projection. Other things to consider like will it be likely that the company find any new technology, product, or project which will significantly influence its earning.
For who?
Growth investing is long term horizon, more than 1 year. Company with high growth will always reinvesting their self to produce new technology and product, so that future earning will rise significantly in the future.
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