the.com/growth stocks
you're not buying earnings, you're buying a story about future earnings
means shares in companies expected to grow revenue and profits faster than the market, priced high today on the promise of tomorrow.
from the term crystallized mid-20th century as investors like T. Rowe Price split the market into growth versus value, betting on trajectory over ballast.
pe ratiooften trades at 30-100x earnings, sometimes none at all
dividendsusually zero, cash gets reinvested into expansion instead
rate sensitivityfuture profits get discounted harder when interest rates rise
classic exampleamazon lost money for years while the stock soared