Growth stock investing can offer significant opportunities for wealth accumulation. As a high-net-worth investor, growth stocks can be an intriguing investment option. It is key to have a risk management strategy to effectively capitalize on high-potential growth stock investing.
What is Growth Stock Investing?
Growth stocks are shares in a company that are expected to grow quicker than the stock market as a whole. Phrased another way, growth stocks are investments in a company or sector that is growing and has projection for continued expansion. These companies typically feature characteristics that make them stand out from their competitors, such as innovative products or higher brand loyalty. Growth stocks are usually priced at a premium due to the faster growth and higher durability of the business model.
Risk Management
It may be tempting to jump into growth stocks without a plan. However, it is also important to constantly monitor risks. Growth stocks can be quite volatile as they often represent new opportunities with an uncertain Total Addressable Market (TAM). Broadleaf Partners has a well-defined risk management process that helps to take the emotions out of growth stock investing. This risk management strategy is highlighted by our sell discipline. Our risk management strategy of pruning our winners and weeding our losers can help reduce portfolio volatility while at the same time providing fresh capital for new portfolio ideas.
Contact Broadleaf Partners
At Broadleaf Partners, we are here to help you make successful investments and manage risks. Contact us today to schedule an appointment with one of our financial advisors to discuss investing in growth stocks.