Finding Growth Stock Winners: Focus on 8 Fundamental Factors

by Louis Navellier

Finding Growth Stock Winners: Focus On 8 Fundamental Factors Splash image

In the classic musical “The Sound of Music,” the character of Sister Maria (played by Julie Andrews) tells us that we should start at the beginning because “that is a very fine place to start.”

In our search for profits investing in growth stocks, however, we do the opposite and start our search at the end. The plain fact is that at the end of the day, what makes for a great growth stock is the fundamentals of the company:

  • Can the company continually sell more of its products and services at higher and higher profits?
  • Can it continue to innovate and adapt to marketplace changes and maintain a leadership position?

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Louis Navellier is chairman and founder of Navellier & Associates in Reno, Nevada, an advisory firm that manages over $5 billion in mutual funds and institutional accounts. He is also editor of four investment newsletters/trading services. This article is adapted from Chapter 1 of Louis Navellier’s new book. Reprinted with permission of the publisher, John Wiley & Sons, Inc., from “The Little Book That Makes You Rich: A Proven Market-Beating Formula for Growth Investing,” by Louis Navellier. Copyright 2007 by Phillips Investment Resources, LLC. All rights reserved. .


Discussion

Stephen from California posted over 3 years ago:

Perhaps AAII should consider the actual performance of pundits, as measured by Hulbert or actual, audited results, before lending our credibility to them.


James from Tennessee posted over 2 years ago:

This approach leaves no stone unturned in search of good stocks. In my case, application of it would take considerable time and force me to pare down the names in the portfolio. Buffett has been advocating not investing in very many stocks all along. Even Jim Cramer says keep the number pretty low so that you have time for the "homework".


James from Maryland posted over 2 years ago:

This article is printed from his "new book" that was copyrighted in 2007.


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