Editing Investment (section)

=== Growth investing ===
[[Growth investing|Growth investors]] seek investments they believe are likely to have higher earnings or greater value in the future. To identify such [[stock]]s, growth investors often evaluate measures of current stock value as well as predictions of future financial performance.<ref name=":1">{{Cite web |title=Is Growth Investing the Right Money-Making Method for You? |url=https://www.investopedia.com/terms/g/growthinvesting.asp |access-date=2022-10-05 |website=Investopedia |language=en}}</ref> Growth investors seek profits through [[capital appreciation]] – the gains earned when a stock is sold at a higher price than what it was purchased for. The [[Price–earnings ratio|price-to-earnings (P/E)]] multiple is also used for this type of investment; growth stock are likely to have a P/E higher than others in its industry.<ref>{{Cite web |last=Chandler |first=Simon |title=A growth stock is a company expected to rise faster than the overall market, offering bigger gains for investors who don't mind risk |url=https://www.businessinsider.com/personal-finance/what-is-a-growth-stock |access-date=2022-10-05 |website=Business Insider |language=en-US}}</ref> According to Investopedia author Troy Segal and U.S. Department of State Fulbright fintech research awardee Julius Mansa, growth investing is best suited for investors who prefer relatively shorter investment horizons, higher risks, and are not seeking immediate cash flow through dividends.<ref name=":1" />

Some investors attribute the introduction of the growth investing strategy to investment banker Thomas Rowe Price Jr., who tested and popularized the method in 1950 by introducing his [[mutual fund]], the T. Rowe Price Growth Stock Fund. Price asserted that investors could reap high returns by "investing in companies that are well-managed in fertile fields."<ref>{{Cite journal |last1=Chan |first1=Louis K.C. |last2=Lakonishok |first2=Josef |date=January 2004 |title=Value and Growth Investing: Review and Update |url=https://www.tandfonline.com/doi/full/10.2469/faj.v60.n1.2593 |journal=Financial Analysts Journal |language=en |volume=60 |issue=1 |pages=71–86 |doi=10.2469/faj.v60.n1.2593 |s2cid=5666307 |issn=0015-198X}}</ref>

A new form of investing that seems to have caught the attention of investors is Venture Capital. Venture Capital is independently managed dedicated pools of capital that focus on equity or equity-linked investments in privately held, high growth companies.<ref>{{Cite journal |last1=Avnimelech |first1=Gil |last2=Teubal |first2=Morris |date=2006-12-01 |title=Creating venture capital industries that co-evolve with high tech: Insights from an extended industry life cycle perspective of the Israeli experience |url=https://www.sciencedirect.com/science/article/pii/S004873330600151X |journal=Research Policy |series=Triple helix Indicators of Knowledge-Based Innovation Systems |language=en |volume=35 |issue=10 |pages=1477–1498 |doi=10.1016/j.respol.2006.09.017 |issn=0048-7333}}</ref>