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Strategy

Growth Investing

Focus on companies with above-average growth.

Long-termActivePhilip Fisher, Peter Lynch

Core idea

Growth investing focuses on companies with rapidly increasing revenue and earnings — often in future-oriented industries. Higher valuations are accepted when they are backed by convincing growth.

How it works

You look for high revenue and earnings growth rates, scalable business models, expanding margins and large addressable markets. Metrics like PEG or revenue growth take center stage.

Pros

  • Potential for above-average price gains
  • Participation in innovation and trends

Cons

  • High valuations are vulnerable to disappointments
  • Larger price swings
Known for
Philip Fisher, Peter Lynch

For educational and informational purposes — not investment advice, not a recommendation to follow this strategy.