GARP (Growth at a Reasonable Price)
GARP Investing Growth at a Reasonable Price GARP stands for Growth at a Reasonable Price. It is a hybrid investment strategy. It combines the ideas of growth investing and value investing. A growth investor looks for companies that can increase their earnings rapidly. Such companies may have strong businesses and good future prospects. However, their shares can sometimes become very expensive. A value investor, on the other hand, looks for stocks that appear cheap compared with their earnings, assets, or other measures. The problem is that a very cheap company may not always have strong growth prospects. GARP tries to find a middle path A GARP investor looks for a company with good and consistent earnings growth. At the same time, the investor does not want to pay an excessive price for that growth. The basic idea is simple: buy a good growth company, but do not overpay for it. The approach is strongly associated with Peter Lynch, the famous manager of Fidelity's Magellan Fund. Lyn...
