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Growth Investing
Growth investing is a type of investment strategy focused on capital appreciation. Those who follow this style, known as ''growth investors'', invest in companies that exhibit signs of above-average growth, even if the share price appears expensive in terms of metrics such as price-to-earnings or price-to-book ratios. In typical usage, the term "growth investing" contrasts with the strategy known as value investing. However, some notable investors such as Warren Buffett have stated that there is no theoretical difference between the concepts of value and growth: "the two approaches are joined at the hip: Growth is ''always'' a component in the calculation of value, constituting a variable whose importance can range from negligible to enormous and whose impact can be negative as well as positive. In addition, we think the very term 'value investing' is redundant. What is 'investing' if it is not the act of seeking value at least sufficient to justify the amount paid?" Buf ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investment Strategy
In finance, an investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio. Individuals have different profit objectives, and their individual skills make different tactics and strategies appropriate. Some choices involve a tradeoff between risk and return. Most investors fall somewhere in between, accepting some risk for the expectation of higher returns. In the field of economics, this decision is driven by finding the investment strategy that has the highest utility. Investors frequently pick investments to hedge themselves against inflation. During periods of high inflation investments such as shares tend to perform less well in real terms. The time horizon of investments also influences the strategy to be followed. Investments such as shares should be invested into with the time frame of a minimum of 5 years in mind. It is recommended in finance a minimum of 6 months to 12 months expenses in a rainy-da ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Emerging Market
An emerging market (or an emerging country or an emerging economy) is a market that has some characteristics of a developed market, but does not fully meet its standards. This includes markets that may become developed markets in the future or were in the past. The term "frontier market" is used for developing countries with smaller, riskier, or more illiquid capital markets than "emerging". As of 2006, the economies of China and India are considered to be the largest emerging markets. According to ''The Economist'', many people find the term outdated, but no new term has gained traction. Emerging market hedge fund capital reached a record new level in the first quarter of 2011 of $121 billion. Emerging market economies’ share of global PPP-adjusted GDP has risen from 27 percent in 1960 to around 53 percent by 2013. The ten largest emerging economies by nominal GDP are 4 of the 9 BRICS countries (Brazil, Russia, India, and China) along with Mexico, South Korea, Indonesia, Turkey ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
David Dodd
David LeFevre Dodd (August 23, 1895 – September 18, 1988) was an American educator, financial analyst, author, economist, and investor. In his student years, Dodd was a ''protégé'' and colleague of Benjamin Graham at Columbia Business School. The Wall Street crash of 1929 (Black Tuesday) almost wiped out Graham, who had started teaching the year before at his alma mater, Columbia. The crash inspired Graham to search for a more conservative, safer way to invest. Graham agreed to teach with the stipulation that someone take notes. Dodd, then a young instructor at Columbia, volunteered. Those transcriptions served as the basis for a 1934 book '' Security Analysis'', which galvanized the concept of value investing. It is the longest running investment text ever published. Early life and education In 1916, Dodd graduated from High Street School, a high school in Martinsburg, West Virginia, where his father was the principal. In 1920, he completed his Bachelor of Science, at Un ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kenneth L
Kenneth is a given name A given name (also known as a forename or first name) is the part of a personal name quoted in that identifies a person, potentially with a middle name as well, and differentiates that person from the other members of a group (typically a f ... of Gaelic origin. The name is an Anglicised form of two entirely different Gaelic personal names: ''Cainnech'' and '' Cináed''. The modern Gaelic form of ''Cainnech'' is ''Coinneach''; the name was derived from a byname meaning "handsome", "comely". Etymology The second part of the name ''Cinaed'' is derived either from the Celtic ''*aidhu'', meaning "fire", or else Brittonic ''jʉ:ð'' meaning "lord". People Fictional characters * Kenneth Widmerpool, character in Anthony Powell's novel sequence ''A Dance to the Music of Time'' * Kenneth Parcell from 30 Rock Places In the United States: * Kenneth, Minnesota * Kenneth City, Florida In Scotland: * Inch Kenneth, an island off the west coast ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
PVGO
In corporate finance, Alex Stomper (N.D.Finance Theory I MIT OpenCourseWare the present value of growth opportunities (PVGO) is a valuation measure applied to growth stocks. It represents the component of the company's stock value that corresponds to (expected) growth in earnings. It thus allows an analyst to assess the extent to which the share price represents the current business, and to what extent it reflects assumptions about the future. PVGO can then also be used in relative valuation, i.e. when comparing between two investments (see similar re PEG ratio). PVGO is calculated as follows: : This formula arises by thinking of the value of a company as inhering two components: (i) the present value of existing earnings, i.e. the company continuing as if under a "no-growth policy"; and (ii) the present value of the company's growth opportunities. PVGO can then simply be calculated as the difference between the stock price and the present value of its zero-growth-earnings; ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
PEG Ratio
The 'PEG ratio' ( price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus, using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different growth rates. The PEG ratio is considered to be a convenient approximation. It was originally developed by Mario Farina who wrote about it in his 1969 Book, ''A Beginner's Guide To Successful Investing In The Stock Market''. It was later popularized by Peter Lynch, who wrote in his 1989 book ''One Up on Wall Street'' that "The P/E ratio of any company that's fairly priced will equal its growth rate", i.e., a fairly valued company will have its PEG equ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Quality Investing
Quality may refer to: Concepts *Quality (business), the ''non-inferiority'' or ''superiority'' of something *Quality (philosophy), an attribute or a property *Quality (physics), in response theory *Energy quality, used in various science disciplines * Logical quality, philosophical categorization of statements * Service quality, comparison of expectations with performance in a service *Vapor quality, in thermodynamics, the ratio of mass of vapor to that of vapor and liquid *Data quality, refers to the condition of a set of values of qualitative or quantitative variables Practices *Quality assurance (QA) *Quality control (QC) *Quality management system (QMS) *Quality Management (QM) Places *Quality, Kentucky, an unincorporated community Brands and enterprises *Quality Comics, an American comic book publisher between 1939 and 1956 *Quality Communications, a British comic book publisher between 1982 and 2008 *Quality Records, a Canadian entertainment company Music * ''Quality'' (C ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Blue Chip (stock Market)
A blue chip is capital stock of a Corporation, stock corporation with a national reputation for quality, reliability, and the ability to operate profitably in both good and bad times. Origin As befits the sometimes high-risk nature of stock picking, the term "blue chip" derives from the card game poker. The simplest sets of casino token, poker chips include casino token#Colors, white, red, and blue chips, with American tradition dictating that the blues are highest in value. In the United States, blue chips were traditionally used for higher values such that "blue chip" used in noun and adjectival word sense, senses are attested since 1873 and 1894, respectively. This established connotation was first extended to the sense of a blue-chip stock in the 1920s. According to Dow Jones & Company, Dow Jones company folklore, this sense extension was coined by Oliver Gingold (an early employee of the company that would become Dow Jones) sometime in the 1920s, when Gingold was standing ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dot-com Bubble
The dot-com bubble (or dot-com boom) was a stock market bubble that ballooned during the late-1990s and peaked on Friday, March 10, 2000. This period of market growth coincided with the widespread adoption of the World Wide Web and the Internet, resulting in a dispensation of available venture capital and the rapid growth of valuations in new dot-com Startup company, startups. Between 1995 and its peak in March 2000, investments in the NASDAQ composite stock market index rose by 80%, only to fall 78% from its peak by October 2002, giving up all its gains during the bubble. During the dot-com crash, many online shopping companies, notably Pets.com, Webvan, and Boo.com, as well as several communication companies, such as Worldcom, NorthPoint Communications, and Global Crossing, failed and shut down. Others, like Lastminute.com, MP3.com and PeopleSound were bought out. Larger companies like Amazon (company), Amazon and Cisco Systems lost large portions of their market capitalizati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Capital Appreciation
Capital appreciation is an increase in the price or value of assets. It may refer to appreciation of company stocks or bonds held by an investor, an increase in land valuation, or other upward revaluation of fixed assets. Capital appreciation may occur passively and gradually, without the investor taking any action. It is distinguished from a capital gain which is the profit achieved by selling an asset. Capital appreciation may or may not be shown in financial statements; if it is shown, by revaluation of the asset, the increase is said to be "recognized". Once the asset is sold, the appreciation since the date of initially buying the asset becomes a "realized" gain. When the term is used about valuation of companies publicly listed, capital appreciation is the goal of an investor seeking long-term growth. It is growth in the principal amount invested, but not necessarily an increase in the current income from the asset. In the context of investment in a mutual fund, capit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
