The Smart Investors

Growth Investing is buying tomorrow’s stocks today. Growth investing means buying shares in companies that are growing very fast and could become much bigger in the future. For example, buying Amazon in 2010 ($50/share) before it became a $2 trillion company.

Key Idea: The idea is to focus on future potential and not the current size.

4 Signs of a Growth Stock
1. Revenue Growing Fast. For instance, a revenue growth of +20% yearly.
2. Expanding Markets. The AI and electric cars markets are booming right now.
3. Reinvesting Profits: Reinvesting the profit to make more money is a wise decision to take.
4. High P/E Ratio. With this, investors will be expecting big growth.

5 Easy Steps on How to Start Growth Investing.
1. Pick Growing Sectors
- in 2025, the trends are AII, robotics, green energy and even space tech.

2. Use Free Stock Screeners
- I find tools like Yahoo Finance, TradingView to be very useful to filter companies by revenue growth).

3. Check Key Numbers
- Revenue Growth: For revenue growth, you should look for +15% yearly.
- Profit Margins: It's crucial that the profit margin should improve over time.

4. Buy Through Apps
- Platforms: Use reputable platforms like Robinhood, eToro where you can start with as low as $10-$100.

5. Hold Long-Term
- You should understand that growth takes time and it's between 3-10 years.

5 Top Growth Stocks for 2025
1. NVIDIA (NVDA)– They are the Leader in AI chips.
2. Tesla (TSLA) – Tesla was doing great at the beginning of the year before Elon got himself into US politics. Hopefully, it’ll bounce back.
3. Shopify (SHOP) – When it comes to E-commerce growth, Shopify is to be reckoned with.
4. Moderna (MRNA)– This for Biotech innovations.
5. Palantir (PLTR) – Data analytics for governments is also thriving this year.

3 Big Mistakes to Avoid
1. Ignoring Valuations: Don’t you ever pay $1,000 for a stock that is only earning $1/year.
2. Panic Selling: It's crucial to note that growth stocks swing very wildly. So, you need to be very patient and not panic sell it.
3. Putting All Money in 1 Stock: It's very partnent to spread investments across 5-10 companies in order to limit the risk.

I watch out for this type of investment because it can give a big profit in the future. Growth investing is buying shares in fast growing companies. They are companies that have potential for future expansion. The things that you look before investing in a growth stock is its rapid revenue growth, expanding market and high P/E ratio.