AXL - By The Numbers: Investment Ideas In Growth Stocks
It's easy to understand why investing in growth stocks can lead to superior returns in the long term. A stock is ultimately a share in an ownership of a business, if all other variables are the same, shares of companies with superior growth rates should deliver above-average returns over time.
Applying this concept in real life is not as simple as it sounds, though. Growth stocks generally trade at above-average valuation levels, and they tend to operate in dynamic industries exposed to fluctuating conditions, permanent disruption, and plenty of uncertainties. When growth investing goes wrong,