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Growth

What Is Growth?

In finance, growth primarily refers to the increase in a financial metric over a specified period, typically indicating expansion or improvement. It is a core concept within Investment Strategy and is often associated with the expectation of increasing capital appreciation for investors. Growth can apply to various entities, including a company's earnings, revenues, or market capitalization, or broader economic indicators such as Gross Domestic Product (GDP). Companies exhibiting strong growth are often referred to as growth companies or growth stocks, characterized by their potential for above-average expansion compared to their industry or the overall market.30 This potential1, 23456, 789[10](https://www.institutionalinv[27](https://global.morningstar.com/en-gb/stories/7CMLFNYATPF3MWMH7WF2Y3IZHI?marketID=gb), 28estor.com/article/2bsx5x8o1c6igjoatflkw/portfolio/value-investing-isntdead-yet-research-affiliates-argues), 11121314151617[18](https://www.home.saxo/learn/guides/trading-strategies/growth-investing-wh[23](https://www.td.com/ca/en/investing/direct-investing/learn-to-invest/growth-investing), 24at-it-is-and-how-to-build-a-high-growth-portfolio)19, 202122