The Motley Fool's Guide to Investing - Episode 9
In our last Further Reading section, we talked about value investing. Here, we're going to take a deeper look at what many would call 'the other side of the coin' – growth investing.
Growth investors focus on companies which are expected to grow rapidly in size and scale, outpacing the market average. Importantly, current performance is less a concern for growth investors; they're more interested in how they think these companies will perform in the future.
How do investors find growth shares? We're glad you asked.
Growth itself is not tightly categorized; any fast-growing business could be classified as a 'growth company', regardless of their size or industry. However, one sector which tends to be synonymous with growth is technology.
Technology companies, although they can be very different from each other, often share several attributes. They can be highly scalable, able to grow quickly; very relevant, to both companies and individuals; and easily accessible, able to be used by customers all over the world.
Because of these unifying factors, technology companies can be very attractive to investors – and often command a high price on the market.
To your wealth, wisdom and happiness,
The Motley Fool Australia
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