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    Growth Stock Investing

    By Epeng | June 5, 2007




    This is a guest blog by Eric from TheFreshTrader.com!

    When looking for a potential growth stock investment, think of yourself as an investor looking for a business to become part owner. As part owner, you are not looking to sell your business right away, so you will seek out long term investments that have the highest potential to outperform at the most reasonable prices. Make sure that the growth is consistent to avoid investments that are hot or trendy and try to follow a very strict set of criteria when performing your analysis.

    Although there are numerous growth companies with various sizes in different stages of development to consider, a primary criterion that investors should focus on is the stability of revenue growth. First off, investors should seek out leading companies in their industry. This may be indicated by high-volume, low cost production, strong sales, and price flexibility to accommodate an inflationary economy. The effectiveness in developing new products is essential because it is a strong assurance of long term success with an ever-changing market environment. Companies that are able to grow sales faster than the growth rate of the general economy are favorable.

    On average, the U.S. economy’s output has averaged 5.4% over the past ten years…[read more at TheFreshTrader]

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