Investing In Growth Stocks - Some Do's And Don'ts From The Decades

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About: iShares Expanded Tech-Software Sector ETF (IGV), SKYY, VUG, Includes: AYX, DOCU, ESTC, MSFT, NTNX, ORCL, PS, TWLO
by: Bert Hochfeld
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Bert Hochfeld
Long/short equity, Growth, event-driven, research analyst
Summary

Investing in high-growth tech stocks is not a one way street and can take patience and intellectual fortitude - trying to trade quarters is not a good bet.

Value typically has to be looked at in the context of growth, free cash flow margins, and other sub-headline metrics.

Understanding and respecting paradigm shifts are key elements of an investment process.

Price targets are of little use in determining a good high-growth investment.

Looking at the growth of bookings and the growth of what is called Remaining Performance Obligation, which are elements in understanding how growth companies are really performing.

Editor's Note: This article was shared with contributors through the Seeking Alpha Author Experience. The article represents the opinions and views of Bert Hochfeld. The article was also shared with PRO+ Tech subscribers -