IFB167: Is It Time To Buy Growth Stocks?

Announcer (00:02):



I love this podcast because it crushes your dreams of getting rich quick. They actually got me into reading stats for anything you’re tuned in to the Investing for Beginners podcast led by Andrew Sather and Dave Ahern. To give you Step-by-step premium investing guidance for beginners. Your path to financial freedom starts now.



Dave (00:31):



All right, folks, we’ll welcome to the Investing for Beginners podcast. This is episode 167 tonight. Andrew and I are going to answer a great listener question tonight. We have a really good one. That’s very interesting. And we thought we would go ahead and kind of dissect this. It has a few different parts, and it would give us a great chance to talk about some different things. So I’ll go ahead and read the first part, and then we’ll start our wheel dialogue. So it starts. Hello, Andrew, Dave, thank you again for the priceless information and insight. You’re both providing us with; I have a few questions in relation to growth investing. What are your thoughts on growth? Stocks are their main source of price rises coming from the anticipation of increased feature growth, as opposed to the true representation of numbers in their financial statements. So we’ll go ahead and start with that one. So, Andrew, what are your thoughts on that first part of the question?



Andrew (01:20):



Yeah, it’s a great question. And I think you can answer it in a myriad of different ways. What’s important is that you take an honest approach and don’t let your biases affect what the answer to that question would be and how you’re going to use that. As you look at stocks, whether they’re value stocks, growth stocks, or any average Joe stock down on the exchange. So I think as it comes to growth stocks and value stocks or any stock, you should know that it’s, every stock is different. So, you know, some of them might be priced based on anticipation of future, future growth, and some might be priced because they are popular hot and have a great idea, even, even something as, as crazy as a great idea, can, can help you raise money on wall street today.



Andrew (02:16):



So, you know, when I, when I tried to think of stocks that seem to be priced in anticipation of increased growth because I think that’s a good place to start. You’re going to have outliers on either side, but a company for me, when I look at the kind of like a stereotypical gross stock, but it’s still based on financial statements, would be Amazon. So Amazon is a company that I believe we might have talked poorly about on the podcast before I might’ve said something negative about if I did, I admit to being wrong on the company the what Jeff Bezos has done with the company. And, you know, we’ve seen that obviously through the pandemic, but as you start to unpeel the layers on this company, you’ll see that there’s, there’s much more to the company than just your standard prime shipping and get me three things off of their website.