Growth Stock Selection And Investment Strategy Research

The key to success in stock investment is how to find well-performed stocks correctly. In recent years, the growth stocks are attracted by many investors. So, research on the choice of growth stocks and investment strategies is meaningful to the reality.In this paper, I define growth stocks are those when the sales and profit growth of companies significantly more than other similar companies and the overall level of economic growth, and ultimately the stocks will reflect the performance by long-term price rise. In addition, growth stocks are from growth companies, but we cannot treat growth stocks the same as growth companies, there are some differences between them.When analyzing the choice of growth stocks and investment strategies, I used a reasonable way to do this, which was starting from the decision of the value of its shares from the theory, then by using of the systematic analysis methods of stock investment to distinguish growth stocks from all stocks. Next, I explored the investment strategies of growth stocks from the behavioral finance point of view. Finally, I finished a system research on how to find a growth stocks and invest in them.This paper is developed in six parts. In part one, I introduced the decision theory of stock value, the efficiency of security market, and then defined the growth stocks. In part two, I introduced the basic methods of investment in stocks, which include the analysis of macro economy, industries, companies'financial statements and Graphical analysis techniques. In part three, I explored methods of how to find a growth stock by analyzing fundamentals, growth rate and other factors. Then, in part four, I took Guang-Hui Company Limited (Security code:600256) for an example. In part five, I introduced the investment strategies base on behavioral finance theory, and then explored the suitable investment strategies for growth stocks. Part six is a summary and conclusion of the full text.This paper is helpful for those stock investors who want to choose a well-performed growth stocks and invest in them, and it needs to be further tested and continuous improved.