2 Important Characteristics of Growth Stocks

It's been a while since I set up this website. Since then I've created a portfolio which some specific shares. For sure you noticed that I'm pretty much a growth investor. I'll try to buy only growth stocks. Let me explain what is a growth stock and how to find one.

Revenue Growth

The most important characteristic of growth stocks is a revenue growth. It describes how does it grew. It might (but don't have to) be a sign how it will grow in the future. 

Negative Investing Net Cash Flow

This one could be suprising for some of them. Many investors don't care about cash flow. We all should! Negative investing net cash flow is the difference of money which the stock spent for investments. When the difference is negative it means that company invested some money. It can be a sign that these investments can bring some profits in the future. That's how companies grow. By investments. The more company invest the more it will grow.

Stocks Analysis

Let's take a look at some NASDAQ companies:


As you can see below Apple company grew a lot. Investing cash flow is defienietly nnegative and desceasing. Apple is a huge company but it might mean that they have still a chance to grow even more. Apple is a growth stock.


Alphabet's financials looks good also. It is also a huge company but it also want to grow more. I consider Alphabet as growth stock as well.


Tesla is much smaller than Apple and Alphabet. The smaller the company is the more it can to grow. Tesla grew a lot for last 5 years. They still invest to grow but hard to expect such a growth in the future. Tesla is still a growth stock.


Baidu is a twice bigger than Tesla but still grows. Growth is weaker and investment stopped but Baidu operates on the market which grows itself. They still have a chance to grow a lot but Baidu need to invest more.

I hope this article helped you to get to know how to know the company will grow. You also already know more about my investing strategy. Please follow http://www.beatnasdaq.com and help to beat the market with your comments.


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