# Growth Investing

*Saving & Investing — Finicade finance glossary*

Growth investing buys companies expected to expand revenue and earnings quickly, accepting high valuations because the future is assumed to justify them. It wins when rates are low and expectations are met, and it loses badly when either changes — a stock priced for 30% growth falls hard on 20%. The style's long stretches of outperformance and violent reversals against value are the clearest evidence that style diversification, not style selection, is the reliable choice.

**Also known as:** growth strategy, growth style

**Related terms:** [Value Investing](https://finicade.com/glossary/value-investing), [Growth Stock](https://finicade.com/glossary/growth-stock), [P/E Ratio](https://finicade.com/glossary/p-e-ratio), [Equity Valuation](https://finicade.com/glossary/equity-valuation), [Market Efficiency](https://finicade.com/glossary/market-efficiency)

**Taught in:** Macro & Markets — Long-Run Briefing

Source: https://finicade.com/glossary/growth-investing