Investing in companies with superior growth rates can produce outstanding returns over the long term. A stock is essentially a share in the ownership of a business, and the price of the stock will follow the value of the business over time. When the business is growing rapidly and ideally accelerating, investors can be rewarded with exponential returns.
On the other hand, investing in high growth stocks is not for the faint of heart. These kinds of companies can be particularly volatile and risky. High growth stocks are priced for demanding expectations, and if the