growth

What is better for long term investors? growth stocks or income stocks?

Investors looking to fund their living expenses through their share portfolio typically select stocks which are high yielding to provide them with income. However, what we have identified over the years is that high yielding stocks have not perform well in the stock market and therefore have not created significant capital appreciation for their investors. The total portfolio returns are therefore worse for investors who hold income stocks. Companies which typically pay large dividends are usually blue-chip mature companies. As …

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What does growth at a reasonable price (GARP) mean?

Investors looking to obtain a balance of growth investing and value investing should consider the strategy known as Growth at a Reasonable Price (GARP) trading strategy. This strategy looks to combine both growth and value investing. Definition Growth at a reasonable price (GARP) is a strategy that combines growth investing with value investing. Stocks which have fall into this group are companies which demonstrate good growth potential in the future but they aren’t too expensive as these have low price/earnings …

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