Growth Investment Crash Course (ePub)

Due to the rapid changes encountered in the social, economical,
and technological status in the society, the financial market is
becoming more volatile causing a great impact on the capital
investment made by the investor. In today's market scenario,
investors need to make a wise-decision on the type of financial
investment the investor is intending to make. Fundamentally,
there are two main types of investments that are available in
the market and they are: a slow and steady income generating
type of investment known as the defensive investment, and a
high-profit generating with a high-risk oriented type of
investment known as the growth investments.
Generally, the investors are advised to consider a diverse
portfolio of investments to gain maximum profit with lower risks
catered to various economic conditions prevailing in the market.
The diverse portfolio of an investor can include a combination
of investments ranging from a stable, income generating
defensive investments (cash and fixed deposit) to a highly
volatile and high profit generating growth investment plans.
While there are many pioneers who have contributed in the
growth investment plan, the earnings cannot be guaranteed
based on a single thumb of rule or by adopting any specific
strategies. Some of the greatest investors who have contributed
in the field of finance investments are Thomas Rowe Price, Jr,
Philip Fisher, Peter Lynch, John Templeton and William J.O'
Neil. These investors have adapted various types of investment
styles including the successful long-term growth investment style.
However, none of these investors have completely adapted the
growth investment style exclusively.
Thomas Rowe Price, Jr, known as the father of growth
investment, started his own fund investment association (T.
Rowe Price Associates) in the year 1937. The investment style
of this association is to market funds on well-managed and
high-profit oriented companies.
Philip Fisher, a famous growth investor and founder of an
investment management firm known as Fisher investments, in
the year 1931. Fisher mostly invested in the manufacturing
companies and emphasized on focusing on a limited number of
stocks that has the potential to outperform in sales and profits
sector for a long term. He preferred to reinvest the earnings
for the development of the company and emphasized to
monitor the following key factors before investing in any
company: tracking management quality, facilitating competitive
edge, and recording consistent sales growth.
William J. O'Neil, stands out for his own
investment strategy that considers both
the quantitative and qualitative approaches
for determining the potential of high value
stocks. Further, in his style of investment,
he emphasizes on holding onto stocks that
are of high value and selling out the
stocks that are undervalued.
While each of the great investors has
implemented different investment styles to
meet their financial objectives, there is no
single thumb rule or strategy that
promises high-profit returns in the growth
investment plan.