Historic Market News
Paying "up for growth” is something that we have heard quite a bit in the past few years. Put simply, it means that an investor must pay more for each unit of earnings or revenue in a high growth company compared to an established mature company. That so many investors have been willing to do this has been a reflection of the market’s quest for growth. However, the recent market turbulence has taken some luster off of the growth stories and brought to light the other side of that equation. When you pay up for growth and the growth appears to be fading, the stock price can drop rather fast.