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Growth Investing
This strategy became popular in the 1990s, during the time when technological
companies were on the rise. Back then, many investors who applied this strategy
were able to get a huge amount of profit. It is to be noted that this strategy is
riskier than other strategies.
The best way to understand this strategy is to compare it with value investing.
While value investing focuses on the present moment, growth investing focuses
on the future. This is the reason why a growth investor may buy a stock that is
currently trading higher than its actual worth. Again, a growth investor looks

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into the future. This is because when he sees that a particular stock will trade at a
higher price in the future, then the investment that you make today can be
considered a profitable one.
When you use growth investing, the best stocks to invest in are those that have a
high capacity to grow. Therefore, growth investors pay special attention to small
and new companies. This is because small and start-up companies have a big
potential and space for development.
Qualitative Analysis
This strategy gives primary focus on the quality of a company. You need to
consider the people who manage the company, their character, and where they
come from. The reason is that a company, no matter how good it is, will not do
well if it is badly managed. It also takes into consideration the management
philosophy of the company or the style by which the people of the company
intend to achieve its goals. Pay attention to the managers of the company, their
background, and experiences. Are they experienced enough to do the job? Do
their experiences fit with their responsibilities? You should also consider the
labor force. Are the people who function as the arms and legs of the company
competitive enough to their job? It may be hard to understand numbers all the
time. Sometimes it is easier to estimate people. This is where qualitative analysis
comes into play. For example, a company that is composed of the best business
people in the world would have a high rate of success. Accordingly, there is a
good chance that the price of its stocks will increase, which makes it a good
investment.