Growth investors invest in growth stocks, which are shares in any particular company that is projected to grow at an above-average pace. The goal here is to invest in a growth stock that will yield a higher return over time instead of in the near future.
Example: If you want to invest in a growth stock, you might take a look at industries that are currently growing as well as metrics such as the three-year sales growth to determine whether or not the company is growing. During the pandemic, for example, online marketplaces were popular growth stocks, including Alibaba and Amazon.
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