How does one pick a decent growth stock?

[NewTrade]

The way I intend to trade is intermediate to long term. So in turn I am looking for a decent growth oppertunity and am wondering what are some of the methods one would use in determining a stock worthy of decent long term growth other than the fundamentals alone.

 

[So_Cynical]

The way I intend to trade is intermediate to long term. So in turn I am looking for a decent growth oppertunity and am wondering what are some of the methods one would use in determining a stock worthy of decent long term growth other than the fundamentals alone.

This may seem rather obvious but...find a company with potential for growth, a history of growth perhaps or a new product or way of doing things, or a can do management.

 

[howmanyru]

Depends what you call decent growth, if you want to make the average XAO growth (historically 12%?) just pick a top 10 company. If you want more growth you are going to have to pick a smaller cap company and take more risk. Don't forget we are in a global debt crunch so think about the sectors that will do well when there is less money floating around. What stock will grow in the next 5years - low debt gold and silver miners probably, debt collectors & pawn shops definately

 

[NewTrade]

Depends what you call decent growth, if you want to make the average XAO growth (historically 12%?) just pick a top 10 company. If you want more growth you are going to have to pick a smaller cap company and take more risk. Don't forget we are in a global debt crunch so think about the sectors that will do well when there is less money floating around. What stock will grow in the next 5years - low debt gold and silver miners probably, debt collectors & pawn shops definately

Lol, you picked it - Gold

 

[joea]

Lol, you picked it - Gold

Gold closed half way down the bar.
So you do not think the vertical trajectory of Gold may have a spell for a while.?
joea

 

[Tysonboss1]

The way I intend to trade is intermediate to long term. So in turn I am looking for a decent growth oppertunity and am wondering what are some of the methods one would use in determining a stock worthy of decent long term growth other than the fundamentals alone.

What do you mean by other than fundamentals.

The fundamentals of the underlying business is what drives the growth of the stock.

Any Stock growth that is not backed by sound fundamentals is sure to end badly, Think tech wreck.

If you want a companies share price to grow over time, Think about what would make other investors willing to pay more for it in the future.

Generally outside any speculative bubbles caused by industries suddenly becoming "sexy", Investors will only be willing to pay more for a business if it is generating more profits.

How will you know if a business will generate more profits in the furture?

Look for companies whos existing businesses are timeless, where they have a competive advantage and high barriers to entry and where they can increase prices over time.

You then also want the company to be able to reinvest the profits back into expanding the system and be able to generate sound returns on the capital that is reinvested.

If they can do that, over time the underlying company will grow more profitable and become worth more, so investors will pay more for it.

 

[NewTrade]

Beautiful advice - thank you all for the input.