Growth stocks have been a reliable choice for many years. Besides a brief crash at the start of the pandemic and a disappointing 2022, growth stocks have generally rewarded long-term investors.
These stocks tend to outpace less risky assets due to higher revenue and earnings growth. While some growth stocks have lofty valuations and questionable timelines for profitability, others are already profitable with reasonable valuations.
While growth stocks have more dramatic price swings, investors with lengthy time horizons exceeding a decade can wait out the dips. Buying promising growth stocks with good financials and great runways can lead to outsized returns in the long run.
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