Investment strategies
Growth, value, dividend, quality and momentum investing, index funds, monthly investing and compounding.
Growth and value investing
Growth and value are two of the best known approaches to choosing shares. They describe different kinds of company an investor might favour, and many people blend the two.
Read →Growth investing
Growth investing looks for companies whose sales and earnings grow much faster than the economy, accepting a higher price for that growth.
Read →Value investing
Value investing looks for shares priced below what the business is worth, often companies that are out of favour.
Read →Dividend investing
Dividend investing focuses on companies that pay out part of their profit to shareholders regularly, for income and stability.
Read →Quality investing
Quality investing looks for companies with high, stable returns on capital, strong balance sheets and steady earnings.
Read →Momentum investing
Momentum investing buys shares that have risen strongly recently, betting that the trend continues for a while.
Read →Index (passive) investing
Active and passive describe two broad ways to invest. One tries to beat the market by picking investments, while the other simply tries to match it at very low cost.
Read →Monthly investing (dollar-cost averaging)
Dollar-cost averaging means investing a fixed amount at regular intervals, rather than trying to time a single large purchase. It is a simple way to build a position steadily.
Read →The power of compounding
Compounding is the process by which your returns begin to earn returns of their own. Given enough time, it can turn modest, regular investments into a substantial sum.
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