Growth investing is an investment style that many follow with the goal of capital appreciation, which simply means to grow their money. To do so, these investors look for stocks that are either in emerging industries or represent emerging companies that are expected to experience earnings growth that outpaces the overall market.
Because share price appreciation tends to follow strong earnings and revenue growth, growth companies are known for providing compelling returns over the short term. However, it’s important to point out that this is not a long-term investment strategy because growth companies generally hit a plateau at some point.
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