Investing in high-growth stocks can generate outstanding returns when done right. In essence, a stock is simply a share in the ownership of a business, and businesses with superior growth rates tend to generate higher returns for investors over the long term.
However, implementing a solid growth investing strategy is much easier said than done. A good idea without a strong implementation can do more harm than good, especially when it comes to growth investing, since high-growth companies tend to be particularly risky and volatile.
In that spirit, the following paragraphs are introducing a quantitative