Growing Rich - Arabictrader.com

INTRODUCTION
The roots of growth stock investing are very rich indeed. Among
the sport’s earliest players was T. Rowe Price. This venerable Wall
Street legend preached the merits of buying quality companies with
accelerating earnings, even if it meant paying a slight premium for
the privilege. Price was among the most influential portfolio managers
of the early twentieth century. He went on to build a mutual fund
empire that has grown exceedingly faster than most of the stocks he
ever owned. While many of his peers agreed with his philosophy, few
followed it as religiously as he did. As a result, their performance
suffered, while his earned widespread praise.
Growth stock investing has come a long way since Price rose to
prominence. Among the more modern-day practitioners of this art
are billionaire Warren Buffett, arguably the most successful and admired
living investor, and former Fidelity Magellan manager-turnedauthor
Peter Lynch. It is clearly the investment discipline with the
widest following on the Street today, largely for one important reason:
It works.
Unfortunately, most who proclaim to follow the tenets of growth
stock investing never reap its rewards, for finding companies with
lasting staying power is no easy task. They come in every size and
industry. But failing to separate the genuine growers from the onehit
wonders leads many investors astray. That’s why so many professional
money managers fail to even keep up with the computer-run
stock market indexes. Surely their performance would be greatly enhanced
if only they knew the 12 rules for successful growth stock
investing, as revealed in this book.
These rules are based on lessons I have learned through interviewing
and observing five of the top growth stock managers watching over
other people’s money today: Elizabeth R. Bramwell, Shelby Davis, L.
Roy Papp, Robert H. Stovall, and Donald Yacktman. These luminaries
have more than 170 years of combined investing experience and have
amassed some of the most impressive performance records on public
display. Investment professionals of this caliber are precious indeed,
for they are few and far between.
While each investor has a slightly different way of choosing com-