Comments on: What are growth investors looking for? http://monevator.com/what-are-growth-investors-looking-for/ Make more money, invest profitably, retire early Wed, 23 May 2012 20:15:18 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: BLOG CARNIVAL: Developing and Supporting Entrepreneurs http://monevator.com/what-are-growth-investors-looking-for/comment-page-1/#comment-7281 BLOG CARNIVAL: Developing and Supporting Entrepreneurs Sat, 01 Aug 2009 04:41:33 +0000 http://monevator.com/?p=2073#comment-7281 [...] Investor presents What are growth investors looking for? posted at Monevator.com, saying, “Understand what potential investors are looking for when [...] [...] Investor presents What are growth investors looking for? posted at Monevator.com, saying, “Understand what potential investors are looking for when [...]

]]> By: Weekend Reading Greats – Semi-Bachelor Edition http://monevator.com/what-are-growth-investors-looking-for/comment-page-1/#comment-6342 Weekend Reading Greats – Semi-Bachelor Edition Fri, 10 Jul 2009 14:08:36 +0000 http://monevator.com/?p=2073#comment-6342 [...] The Monevator tells us what growth investors are looking for. [...] [...] The Monevator tells us what growth investors are looking for. [...]

]]> By: Printing itself out of trouble : Interactive Investor Blog http://monevator.com/what-are-growth-investors-looking-for/comment-page-1/#comment-6240 Printing itself out of trouble : Interactive Investor Blog Mon, 06 Jul 2009 17:44:13 +0000 http://monevator.com/?p=2073#comment-6240 [...] Monevator asks, “What are growth investors looking for?” [...] [...] Monevator asks, “What are growth investors looking for?” [...]

]]> By: pkora http://monevator.com/what-are-growth-investors-looking-for/comment-page-1/#comment-6211 pkora Sat, 04 Jul 2009 13:31:45 +0000 http://monevator.com/?p=2073#comment-6211 Growth investing is momentumm investing. Follow a stock that is increasing in value because it has a good story attached to it and get out before it goes pop as everyone realises that the earnings potential is never going to be realised. Very rarely one stock does actually grows to become a cash making machine but then what are the odds. Better to stick with growth stocks with momentum behind them and not get too attached to them as most are simply going to fail. Growth investing is momentumm investing. Follow a stock that is increasing in value because it has a good story attached to it and get out before it goes pop as everyone realises that the earnings potential is never going to be realised. Very rarely one stock does actually grows to become a cash making machine but then what are the odds. Better to stick with growth stocks with momentum behind them and not get too attached to them as most are simply going to fail.

]]> By: Richard Beddard http://monevator.com/what-are-growth-investors-looking-for/comment-page-1/#comment-6187 Richard Beddard Fri, 03 Jul 2009 10:11:43 +0000 http://monevator.com/?p=2073#comment-6187 Hi Monevator. I'm enjoying your posts. I'm definitely very sceptical about growth so I'm afraid I'm unable to answer your call to arms (though I think many growth investors look for high return on assets, which is a good predictor of future returns I believe). Some companies grow inexorably. Abcam and ASOS have made fools of me (liked the companies, couldn't bring myself to invest in them) but I think they're the exception and being able to spot which keep growing and which stumble is very, very difficult. There's more certainty in value. I'm struck by a quote from Anthony Bolton, which is almost the exact opposite of one of your concluding paragraphs: "I realise that PEG ratios are more the domain of the growth rather than the value investor but I’m afraid I can see little logic in the argument that a business at five times earnings growth at 5% a year, one at ten times earnings growing at 10% or one at 20 times earnings growing at 20%, which all have the same PEG, are equally attractive, I would go for the five times earnings growing at 5% every day." It's from his new book, I first quoted it here: http://blog.iii.co.uk/investing-against-the-tide/ (scroll down the page a bit). I've made the opposite journey to you. I started out a GARP guy but have gradually got more and more cynical about growth. It's psychologically comforting because value stocks are often so dull. But then, they're often underestimated which is what gives them such potential. Hi Monevator. I’m enjoying your posts. I’m definitely very sceptical about growth so I’m afraid I’m unable to answer your call to arms (though I think many growth investors look for high return on assets, which is a good predictor of future returns I believe).

Some companies grow inexorably. Abcam and ASOS have made fools of me (liked the companies, couldn’t bring myself to invest in them) but I think they’re the exception and being able to spot which keep growing and which stumble is very, very difficult. There’s more certainty in value. I’m struck by a quote from Anthony Bolton, which is almost the exact opposite of one of your concluding paragraphs:

“I realise that PEG ratios are more the domain of the growth rather than the value investor but I’m afraid I can see little logic in the argument that a business at five times earnings growth at 5% a year, one at ten times earnings growing at 10% or one at 20 times earnings growing at 20%, which all have the same PEG, are equally attractive, I would go for the five times earnings growing at 5% every day.”

It’s from his new book, I first quoted it here: http://blog.iii.co.uk/investing-against-the-tide/ (scroll down the page a bit).

I’ve made the opposite journey to you. I started out a GARP guy but have gradually got more and more cynical about growth. It’s psychologically comforting because value stocks are often so dull. But then, they’re often underestimated which is what gives them such potential.

]]>