Always Free To Place a Hit On Someone
When you ask most investors for their favorite stocks Anthony Gose Jersey , youll rarely hear them share a blue chip name like Johnson & Johnson, Kraft Foods or Wal-Mart. Instead they will tell you about some amazing growth stock that will be the next Google, Microsoft or Apple.
These investors believe that by simply buying growth stocks with the greatest earnings growth potential that they will make money. Sadly our research clearly shows this not to be truenot even close.
In this article we will dispel the myth about investing in growth stocks and shine the light on a path that has more consistently paved the way to profits.
I know that many of you are still shaking your heads in disbelief. Certainly I must be joking, right? Unfortunately our research details beyond a shadow of a doubt the vast under performance of growth stocks over the past decade.
Stocks with the lowest projected growth rates actually generated the highest return of +5.4% per year. Yes Anibal Sanchez Jersey , I know that doesnt sound like much, but remember the average return of the S&P 500 over that stretch was an anemic -3.3% thanks to two ferocious bear markets.
Each level of additional earnings growth came with decreasing levels of profits for investors. As we look at the most aggressive growth stocks with 30%+ expected earnings growth, we find an embarrassingly low -9.7% return. This begs an obvious question...
Why Dont Growth Stocks Pan Out?