Growth investing using fundamental analysis is one of the oldest and most basic styles.
This is an active investing strategy. It involves analyzing financial statements and factors about the company behind the stock. The goal is to find a firm whose metrics show the potential to grow in the years
Growth Investing
This style of investing looks to construct a portfolio of 10 or more individual stocks.
If you’re a beginner, it can take a lot of time to do the research needed to make this strategy a success, but it is what many fund managers use to get returns.
Growth stocks
Growth stocks often perform best in the mature stages of a market cycle. The strategy reflects what investors do in healthy economies (gain higher expectations of future growth and spend more money to do it).
Tech companies are good examples here. They are often valued high but can grow beyond those valuations when the environment is right.
If you choose this strategy, you will analyze data from a business’s financial statements. In doing so, you may arrive at a valuation (price) of their stock. That will help you figure out whether the stock would be a good purchase or not.
