How to Successfully Invest in Growth Stocks

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Investing In Growth Stocks

Investing in growth stocks are very different than investing in ordinary stocks. As a result, they are valued differently. As Mr. Valuation I often talk about the importance of investing with a margin of safety. This is especially important when investing with companies of average or ordinary growth potential. However, the margin of safety concept is very different when investing in a true growth stocks. I define growth stocks as companies that have historically grown earnings at 15% a year or better and are expected to continue doing that in the future. Powerful growth provides its own kind of a margin of safety.

Understanding the difference between growth stocks and ordinary stocks is achieved by the understanding of the power of compounding. The time use of money is a key investing concept. Growth stock investing collapses time which dramatically accelerates your rate of return. In this video, I will present 7 growth stocks that have achieved tremendous historical results for longtime shareholders. More importantly, 6 of these companies appear to possess the opportunity to continue doing that in the future. The one that does not, does provide a very important lesson which is why it is included.

The 7 stocks I will be covering in this video are: Lithia Motors (LAD), LKQ Corp (LKQ), Alibaba Group (BABA), Facebook (FB), Starbucks (SBUX), Etsy (ETSY), Amazon (AMZN)

Growth Stocks Portfolio