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IC Tip Ratings explained

What do we mean by value investing? How risky is high risk?
October 13, 2011

True, portfolios need to be tailor made, yet our new tip ratings are definitely prêt à porter. We hope they are useful, nonetheless. Here's what they mean.

Tip style: Growth

Where a company is expected to produce growth in sales and profits above the market average for the foreseeable future. This should translate into higher-than-average growth in earnings per share. Growth companies may not yet be paying dividends, though they should be generating substantial sales and, at least, be close to making profits. Typically, growth company shares – or funds that specialise in them – are for investors who can tolerate carrying substantial loss-making positions and are investing over a time horizon of many years.

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