Growth investors generally focus on those companies with sustainable above average growth, those that exhibit high levels of profitability and earnings growth ahead of their peer group.
Growth managers tend to look to the future and typically invest in companies that have a solid earnings outlook, even if the share price appears expensive in terms of metrics such as the company’s price-to-earnings (P/E) ratio or price to book (P/B) ratio – the investor is willing to pay more today for a company’s future cash flows.
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