Growth investing

1  2  3  4  5  6  7  8  9  10  11  12  13  14  15   

13. Other factors

The following are some miscellaneous factors to consider when investing in growth stocks:

1. By buying fast-growing shares near the end of one financial year (or half-year) you frequently enjoy a one-off gain as the market absorbs the results of the previous year and digests the news that next year should be even better.
2. Some businesses are very seasonal, and have a much better first half than second (or vice versa). Bear this in mind when considering interim results, and compare first halves with first halves of the previous year, and second halves with second halves.
3. Be careful not to confuse a cyclical stock coming out of the bottom of its cycle (and so apparently growing strongly) with a genuine growth stock.

1. What is a growth stock? 2. Comparison with value investing 3. Traditional characteristics of a growth stock 4. Anatomy of a growth stock - Peter Lynch 5. Ten dos and don'ts from Peter Lynch 6. Jim Slater - The Zulu Principle 7. Earnings growth 8. The PEG factor 9. Competitive advantage 10. Do growth stocks have to be small? 11. A short diversion into internet stocks 12. When to sell a growth stock 13. Other factors 14. Case study of a growth stock - Sage 15. Conclusion

• Value Growth Investing
• One Up on Wall Street