Although growth stock picks can be highly volatile, they can make good long-term investments. They may be well-known stars or quiet gems, but they do share one common attribute—they are growing at a higher-than-average rate within their industry, or within the market as a whole, and could keep growing for years or decades.
And keep in mind that we focus on growth stocks, which have a good long-term history and favourable prospects. We downplay momentum stocks that tend to attract many investors simply because they are moving faster than the market averages, but are liable to fall sharply when their momentum fades.
There’s room for growth stock investing in your portfolio, but make sure you follow our TSI Network three-part Successful Investor strategy for your overall portfolio:
- Invest mainly in well-established companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
- Downplay or avoid stocks in the broker/media limelight.
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The 787 uses advanced rechargeable lithium-ion batteries to power its electrical systems....
ADRs make its easier to invest in foreign companies, such as the three we analyze below, without the complications of buying or selling on foreign exchanges or in foreign currencies....
Thanks to the huge success of the iPhone and iPad, as well as the star power of the late Steve Jobs, Apple’s co-founder and CEO, the company became a media and broker favourite....
LIMITED BRANDS INC. $44 (New York symbol LTD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 288.4 million; Market cap: $12.7 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.7%; TSINetwork Rating: Average; www.- limitedbrands.com) owns the Victoria’s Secret lingerie chain and the Bath & Body Works personalcare products stores.
Limited is restructuring the La Senza lingerie chain in Canada, including closing a third of its stores (it now has 158 outlets) and shifting its focus to younger shoppers.
In its 2013 fiscal year, which ended February 2, 2013, Limited’s sales rose just 0.9%, to $10.5 billion from $10.4 billion in 2012....
NEWMONT MINING CORP. $40 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 496.7 million; Market cap: $19.9 billion; Price-to-sales ratio: 2.0; Dividend yield: 4.3%; TSINetwork Rating: Average; www.newmont.com) gets 90% of its revenue from gold mines in the U.S., Australia and Peru....
As a result, the company raised its quarterly dividend by 15.0%, to $0.23 a share from $0.20....