"Growth Investing : One Fundamental Style of Investment "

-




Growth Investing

· There are two types of fundamental approach or style while investing in stock or equity.
· Growth Investing is one of the two fundamental styles of investment.
· Growth Investors buy Growth Stocks, which are expected to grow at a faster rate than other stocks in stock market.
· Growth stocks are supposed to have a considerable growth in near future.
· Expansion or growth of growth stocks are supposed to beat inflation.
· Growth investing is not a static concept, i.e. a growth stock seizes to be a growth stock when it stops growing.
· Growth stocks have low dividend yield and above-average valuation as measured by ratios like Price-to Earning, Market Cap-to-Sales and Price-to-Book Value.
 · These stocks may perform best in a growing stock market. But these stocks may be punished first in a cooling stock market. 
· Example of growth stock in Indian market now ……… Maruti Suzuki.
    

Happy Investing !!! 
দীপ
##  Common Investors may collect ebook from the following link for mastering the basics of investment :


### Govt Job Aspirants in Mechanical Engineering (Degree or Diploma) may collect ebook from the following link for cracking Competitive Exams :

 https://pothi.com/pothi/book/ebook-er-pradip-mondal-solved-exam-papers-wbpsc-mechanical-engineering

Comments

  1. Avijit15 January 2018 at 03:17

    Growth Investing is one of two fundamental investing approach so another one is mutual fund?

    ReplyDelete
  2. PRADIP15 January 2018 at 05:34

    Two types of fundamental approach to investing...
    1) Growth Investing
    2) Value Investing
    Fund managers of Mutual Funds apply both approach while investing in Share/Stock.

    In my next article, I will discuss about Value Investing!
    Stay tuned !!!

    ReplyDelete
  3. Phani Kumar20 June 2020 at 03:39

    Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.
    EBITDA

    ReplyDelete

Post a Comment

Popular posts from this blog

Bulls make money, Bears make money, Pigs get slaughtered !!!

-
Image
                     People enter the world of stock market in the expectation of big money in short time. But making money in stock market is not easy at all, rather an uphill task. Sound knowledge & understanding of market, huge research work, monumental patience & discipline - are the qualities of a successful investor.                                         Bull market is represented by a bull which attacks with its horn in upward direction. Metaphorically speaking, the investors have high confidence & stock price goes on increasing. Investors make profit after buying stocks at lower prices & selling at higher prices.                        Bear market is represented by a bear which attacks with its paw in downward direction. Metaphorically speaking, the investors have low confidence & stock price goes on decreasing. Investors make profit after selling stocks (which do not exist in his portfolio) at higher prices & buying at lower prices.
Read more

The concept of 'Market Making' & 'Market Maker' in Stock Market !

-
Image
'Market Making' & 'Market Maker' Suppose one buyer is willing to buy a specific stock but there is no seller to complete his order. The reverse case may also occur in Stock Market. To sort out this real life situation, the concept of 'Market Making and Maket Maker' was introduced by SEBI (Securities and Exchange Board of India) in indian Stock Market.  Market Maker is typically an institution which is appointed by Stock Exchange to increase and meet demand-supply of shares in Stock Market. The Market Maker places buy-and-sell call at the same time for a specific time period for a guaranteed number of shares.  So, 'buy / sell' requirement of investor/trader is fulfilled by Market Maker's own holding or inventory of stocks. The Market Maker books profit by the difference between buy-call and sell-call placed by him.  Suppose the Market Maker places a quote of Rs.500-450, which means that the Market Maker will buy stock at R
Read more

Honesty is a very Expensive Gift. Do not expect it from Cheap People.

-
Image
The title of this article is quoted by Warren Buffett & this is a harsh truth in every sphere of our life. Most of the people in this world are working very hard to earn money for living a life full of happiness & joy. They wish to fulfil their dreams and imaginations. Money is the most useful power which can do almost everything in this world. Hence, they invest their savings in the expectation of handsome return. No one  will be happy in losing his hard-earned money in poor investment. The most common & big mistake we do in our life is nothing but investing our money as per advice of any person, broker or agency without any verification of their offer. Sometimes, agents or brokers intentionally involve their customers in poor investment plan for getting more interset or commission. They misguide their customer with fake promise for their own benefit & consequently, the investor loses his hard-earned money. A huge market-research is required for verifi
Read more