What are Growth Stocks?

Growth stocks are companies with a faster sales growth rate than the broader market. I typically categorize growth stocks as companies with a higher than 20% annual sales growth rate.

Due to their high revenue growth, you will make faster gains on growth stocks than value stocks in the short run.

On the other hand, growth stocks can be extremely volatile and risky so be prepared for some short term uncertainty as these companies can experience fast revenue growth during good times but also deal with falling revenue during recessions.

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