Growth investing: What it is and how to build a high-growth portfolio
Growth vs. value investing
The main difference between growth and value investing {link to value investing guide} lies in their objectives and how they view a company’s current price relative to its potential.
Growth investors prioritise future potential, often paying a premium for stocks they believe will experience rapid earnings or revenue growth. These stocks are generally more expensive based on standard valuation metrics, such as the price-to-earnings (P/E) ratio, because investors are betting on the company’s future success.
On the other hand, value investors focus on buying stocks that are trading below their intrinsic value, essentially looking for bargains. These companies may be temporarily out of favour with the market due to…
