notices - See details
Notices
JV
Jason Voss, CFA (not verified)
11th August 2014 | 11:02am

Hello Nabeel,

Thank you for your asking for clarification. What I meant was that just as there are growth investors there are growth companies. Growth companies are those that are growing some portion of their income statement (e.g. revenues, EBIT, EBITDA, or earnings) faster than most other companies. Often this growth is in new business lines where returns are more uncertain than in more established businesses. Think: Apple selling iPads 4 years ago; or Vonage selling Internet based calling 10 years ago. High growth, but high risk, too. So to invest in a growth company, and that is the kind of company most growth investors look to invest in, menas taking on greater risk. Does that make sense?

With smiles,

Jason