How important is the valuation of a stock for the growth investor?
Regardless of the type of investors, valuation is very important. Investors oriented towards growth must take particular care to analyse the valuations of a stock going forward. What potential do you see for growth investing in emerging markets, specifically in India? There is a lot of potential for all avenues of investing in emerging markets including India. We don’t really differentiate between “growth” and “value” investing because when evaluating a stock we must not only look at the valuation today but what the valuation will be in the next five years. In that context, growth is critical. We are not only interested in what the valuation of a company is today but what it will be in five years and that five-year estimate will depend on growth. Is there any difference between growth investing in developed markets and growth investing in emerging markets? No I don’t think so. What are the pitfalls one should consider while adopting growth investing? The main risk here is the non-mater
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