Growth investing

Growth investing seeks companies whose revenue, earnings, cash flow, or market opportunity can expand faster than the broader economy for an extended period. The central challenge is distinguishing durable growth from temporary momentum. Own businesses capable of compounding revenue, earnings, and free cash flow over many years. Key point: Growth investing is not a style label to follow mechanically. It is a decision process with explicit assumptions, evidence, review triggers, and exit conditions.

1. 1Growth must be supported by a large runway and competitive advantage.
2. 2Returns on reinvested capital matter as much as the growth rate.
3. 3Management quality and capital allocation determine how much growth reaches shareholders.
4. 4Separate the long-term thesis from short-term price movement in Growth investing.
5. 5Write in advance what would make the method unsuitable for the case being analyzed.

1. 1Estimate the addressable market and the company's realistic share opportunity.
2. 2Test revenue growth against margins, cash conversion, and dilution.
3. 3Evaluate competitive durability, management, and reinvestment economics.
4. 4Use scenarios to determine what growth is already embedded in the price.
5. 5Write the main assumptions, fair value range, and monitoring signals before buying.
6. 6Compare actual evidence with the original thesis instead of judging only by unrealized gain or loss.