There are many investment strategies being taught in the market. They each have their own pros and cons. Here are 3 common investment strategies that most stock market investors are familiar with:
Growth Investing Strategy
The main aim of the growth investing strategy is to identify companies with good growth potential. There are several factors that the growth investor would refer to regularly: Historical Earnings Growth, Earnings Per Share, Projected Earnings Growth, Return on Equity.
Growth investors are not concerned about the current price point of a stock but rather are interested in its potential growth over the next 5 to 10 years. They would tend to carry out fundamental analysis and research into the background of the growth stocks before deciding to invest.
A good example of a growth stock is Amazon (AMZN). Earnings are negative and historically it has been running on losses. Yet investors have piled into ......