PSX Clarity
G
Glossary · PSX term

Growth investing.

Growth investing focuses on companies expected to grow earnings faster than average.

Definition

Growth investors accept higher valuations for the prospect of rapid future expansion, often in technology or fast-scaling sectors. The risk is paying too much if growth slows or fails to materialise.

Worked example

Buying a fast-growing tech company like SYS at a high P/E, betting on continued growth, is growth investing.

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