Growth Investing

Growth investors pay up for companies expanding sales and profits quickly. Here is what they look for, why high expectations cut both ways and how real fast growers performed over the past year.

Paying for the future

Growth investors buy companies whose revenue and earnings are rising much faster than average, even at high valuations. The bet is that rapid growth will make today’s high price look cheap in a few years. Key signs include fast revenue growth, expanding margins, a large market to grow into and a durable competitive edge.

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