Performing Better Than the Market

Jul 2017 //
Investing

Stock investors who want old-fashioned 10% average annual returns would seem to need to invest differently than just owning stocks in general. One approach might be to concen­trate in companies that seem poised to grow faster than average. Companies like Apple, Amazon, Facebook and Google, for example. If only a small number of investors followed this approach, it might work. However, when enough investors pursue growth investing, their buying ultimately pushes growth stock prices higher than would be attributable solely to corporate earnings growth.