Growth Investment Strategy
How to Outgrow the Competition
If you want to focus on the future development and potential of the company, then our Growth Strategy is right for you. The current stock price is of less importance, as good company growth in comparison to the competitors will drive returns. Even in times of poor macroeconomic growth, you profit when your stock pick grows more or shrinks less than your competitors.
"If a company can show nice consistent earnings for four or five years I don't care whether it makes broomsticks or computer parts." - Martin Zweig
Compared to investors who rely on the Value strategy, you rely on stocks that have strong growth potential. Your stock may be traded at a higher price today, but growth will increase its value and create profit for the future. Companies expected to grow at a high rate are often young companies in rapidly growing industries, e.g. New Technology.
Metrics of the growth strategy
Revenue growth
Defined as:
Capital growth
Defined as:
Profit growth
Defined as:
Stock returns
Defined as:
cy = Current Year
py = Previous Year
IV = Investment Value