With the current bull market entering into its 10th year, growth investing has been a lucrative strategy for investors to pursue during this time. 'Old school' growth stocks like Treasury Wine Estates Ltd (ASX: TWE) and CSL Ltd (ASX: CSL) have seemingly been on a permanent upward trajectory over the past decade, while some of the 'new school' stocks like Afterpay Touch Ltd (ASX: APT) and Altium Limited (ASX: ALU) have recently returned double digit growth over a period of months.
For those unfamiliar, growth investing involves identifying growth 'trends' in the market, buying low, riding the wave and selling high (hopefully). It's less about where the share price is right now – what matters to a growth investor is where its going.
Here are two ASX growth stocks that might be in the middle of such a trend.
Nanosonics Ltd (ASX: NAN)
Shares of this medical wunderkind would have made early investors very happy. A decade ago, you could have picked up shares in Nanosonics for under 30 cents – a far cry from the $5.12 price they are currently trading for. Nanosonics specialise in infection-control equipment and its flagship ultrasound probe disinfection system Trophon is dominating in Australia. Due to the global opportunities for Nanosonics' product, there is a lot of runway ahead for the company. Medicine is one of those industries where you can be pretty sure of a permanent tailwind and Nanosonics should be on any growth investor's radar.
Fortescue Metals Group Limited (ASX: FMG)
Although resource stocks may not be the trendiest growth stocks around, there is no doubt that Fortescue shares have made many investors very rich over the last year. Anyone who picked up Fortescue shares for around $3.50 in September last year is probably laughing on their way to the bank as we speak. The shares are currently (at the time of writing) swapping hands for $8.46 but hit an eleven-year high of $9.34 last month. With iron ore now trading at a five-year high of around US$110 per tonne and our dollar at a historical discount to the greenback, this is a growth trend at its finest.
Foolish takeaway
"You gotta know when to hold 'em, know when to fold 'em" – the timeless words of Kenny Rogers are ones to keep at the front of your mind if you're a growth investor. Riding the wave is fun and can be very rewarding – you've just got to watch out if (or when) it crashes.
