What is growth investing?
While the name ‘growth investing’ may seem like it has an aim indistinguishable from any other investment strategy – that is, to generate a return on your investment, there is a noticeable difference. Growth investors typically ignore the larger companies that already have proven track records in favour of those that have the potential to grow at a more competitive rate.
This strategy is a risky one, as there is no guarantee of success. However, if these companies are successful, such investments can provide some great returns. Although not considered small by any means, some high-profile examples of growth companies include Shopify, Alibaba and Netflix.