What is growth investing?

Updated | 03-June-2023

INVESTING

Lillaney , RTI For Money

4/30/20232 min read

growth investinggrowth investing

We will be covering the following topics in this article.

  1. What is growth investing?

  2. What are some of the examples of large cap stocks for growth investing in India?

  3. What are some of the examples of mid cap stocks for growth investing in India?

  4. Which book can we read to understand about growth investing?

What is growth investing?

Growth investing is an investment strategy that focuses on buying stocks of companies that are expected to grow at a faster rate than the overall market or their peers. The objective of growth investing is to find companies that have high potential for future earnings growth, which is reflected in their higher stock prices.

Growth investors look for companies that have strong financials, a history of high revenue growth, and a large addressable market. These companies often reinvest their earnings back into their business to fund growth opportunities, such as research and development, marketing, or expansion into new markets.

Growth investors often pay a premium price for these stocks, as they believe that the potential for future earnings growth justifies the higher valuation. Growth stocks typically have a higher price-to-earnings ratio (P/E ratio) and price-to-book ratio (P/B ratio) than the overall market or their value stock peers.

The growth investing strategy is often associated with technology and biotech companies, which are known for their high-growth potential. However, growth stocks can be found in many different industries and sectors, including healthcare, consumer goods, and finance.

While growth investing can be a profitable investment strategy, it is also associated with higher risk and volatility. Companies that are expected to grow at a faster rate are often subject to more uncertainty and market fluctuations than more established companies with a proven track record. As such, growth investors must be willing to tolerate higher risk and be prepared to hold onto their investments for the long term.

What are some of the examples of large cap stocks for growth investing in India?

Some of the examples of large cap stocks for growth investing in India right now in June 2023 are as follows:

  1. Trent (Star Bazaar)

  2. KPIT Tech

  3. Titan Company

  4. Persistent Systems

What are some of the examples of mid cap stocks for growth investing in India?

Some of the examples of mid cap stocks for growth investing in India right now in June 2023 are as follows:

  1. Cyient

  2. Minda Corp

  3. Craftsman Automation

  4. Narayana Hrudalaya

  5. KEI Industries

  6. Power Mech Projects

  7. Metro Brands

  8. Coforge

  9. CCL Products

  10. Syngene International

  11. Crisil

Which book can we read to understand about growth investing?

The best book to understand about growth investing according to me is “Common Stocks Uncommon Profits” written by Phil Fisher. He is considered as one of Warren Buffett’s gurus. The book explains that if you buy a high quality stock then the price does not matter so much if the runway for growth is good.

If you are interested in purchasing the book you can do so from the link below:

Common Stocks Uncommon Profits - https://amzn.to/43ExiJd