Invest in small but fast growing companies. These companies will give you bigger gains but also carry higher risk.
Buy companies with high sustainable growth rate. It is the reasonable growth rate that a firm can sustain and can finance using internally generated assets and without additional debt or equity. Its growth based on internal resource generation and the stock records consistent growth. If you want to learn more check out these resources: Key […]
Growth Funds invest in growth companies which are expanding profits and earnings. Select one or two highly rated growth funds and invest a small amount periodically. Let your money compound over a long period. If you want to learn more check out these resources: The Ultimate Guide on When to Make Traditional vs. Roth IRA […]
Before buying individual shares it’s important that you know, and completely understand, the key stock picking criteria. Broadly speaking, you should consider these two factors while evaluating your stocks: growth and valuation. Ideally, a stock should exhibit high growth and be priced reasonably. Use EPS, P/E ratio and price-book value for stock picking. Study this […]
If you lean on the side of growth investing be sure to look at the core competency in companies that you want to invest in. Core competency provides sustainable competitive advantage and the company benefits from the growth. Graham considers value of potential growth only if the growth is within the core competence or franchise […]