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Growth Stock Investing In 3 Easy Steps

Oct. 03, 2021 11:26 PM ETBRK.B, BTI, CRWD, DIS, GOOG, GOOGL, LMT, SPY, V, PARA, BRK.A20 Comments
John Rhodes profile picture
John Rhodes


  • First, growth versus value is discussed, including comments about the market versus Berkshire Hathaway.
  • Second, portfolio allocation is reviewed, in light of putting money to work with growth stocks, not just value stocks and dividend stocks.
  • Third, valuation is always a consideration, but the metrics are not necessarily the same for all types of stocks - examples are provided.
  • Fourth, a "tried and true" investment approach is explored, to be layered on top of portfolio allocation and valuation.
  • I do much more than just articles at Growth Stock Renegade: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

One two three - 3d progress steps

matdesign24/iStock via Getty Images

Setting The Table

At this point in time, Berkshire Hathaway (BRK.B) (BRK.A) is still my largest position. Of course, I trust Warren Buffett quite a bit and I appreciate the Owner's Manual

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This article was written by

John Rhodes profile picture
I am an investor, entrepreneur, father, husband, coach and teacher.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BRK.B, BTI, VIAC, LMT, CRWD, DIS, GOOGL, AMZN, PYPL, PLTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (20)

09 Oct. 2021
Very good and concise article! Thank you @John Rhodes!
alchemist11 profile picture
Love your strategy! Also: " I'm afraid I would have been better off buying the S&P 500 (SPY). Furthermore, I am not convinced that BRK.B will strongly outperform SPY from this point forward.' Unfortunately I invested in BRK and love the stock BUT I have to agree with you. I think it's dead for now.
Mr. Rhodes....another clear and concise article and like buy and hold said..."keep it simple stupid".... that has worked for me very well. good luck to all..
siestadreamer profile picture
Thanks for your article, @John Rhodes.

I’m retired, but still pursue a growth & income strategy. However, instead of having two different buckets, I only buy what Mike Nadel termed “growthier” dividend payers. DIS, SBUX, AAPL, MA, and the like are better known examples. They won’t have the explosive growth that stocks like CRWD offer, nor high yield like T used to offer, but a Goldilocks blend of price and income growth that lets me sleep pretty well at night.
John Rhodes profile picture

I'm long: DIS, SBUX, AAPL, V (the other side of MA duopoly).

Thanks for reading and commenting.
Nice article. Long palantir, Lockheed, Altria and precious metal miners.
Precious metals especially silver are in the dirt. Imo great time to get in the pool
My advice for younger or novice retail investors

Minimise charges ie buy ETFs

Diversify ie buy ETFs

Don’t buy individual stocks ( helps take the emotion out of investing and minimises risk)

Pay into your funds first each month (15-20% income) the rest you spend

Resist looking at your portfolio

Resist following all financial media

Resist obsessing about money and wealth but cultivate the discipline to stick to the above.

When the bear market hits smile and continue with the above.

Your future will be guaranteed
John Rhodes profile picture
@sergeant major x

ETFs are an excellent foundation for most investors and especially younger folks. Get started early, just keep adding when possible, and never look back. Above all, don't panic!

That said, cherry picking and buying into the right stocks can be completely life changing. Low fee, well-diversified ETFs can be the core, but adding growth stocks along the way (even in small to moderate amounts) can alter reality for folks.

And, if properly sized, but there are "losses" then the damage can be mitigated. Asymmetric bets; limited downside, nearly unlimited upside.

In any case, great comment. Appreciate it.

Have a delightful day.
Buyandhold 2012 profile picture
"They chase stocks going higher due to greed......."

So bad.

I used to do that in the 1980s.

I would see a stock that had gone up 900% in 2 years and then buy it.

Of course, I always asked my mother first.

"Should I buy Stock XYZ, Mom? It's up 900% in the past 2 years."

"What's the P/E?"


"Only if you're an idiot."

So I bought it.

And wouldn't you now it, it went up another 900% before it crashed to zero.

"Didn't I tell you not to buy that stock?" my mother snapped. "Always listen to your mother."

"And they sell out of stocks at dips and crashes at exactly the wrong time...."

Very, very bad.

Never ever sell. And that avoids the problem of selling at the wrong time.

"I like British American Tobacco, Lockheed Martin, and Viacom CBS."

So do I. They are buys whenever the PEG ratio is below 2.00.
John Rhodes profile picture
@Buyandhold 2012

With this...

"I like British American Tobacco, Lockheed Martin, and Viacom CBS."

I added a little something for everyone.

BTI, LMT and VIAC are good buys right now.

(Even if they aren't growth stocks...)

Appreciate your humor - And, of course, Mom's wisdom.

Have a great day.
Rydercup2020 profile picture
@Buyandhold 2012 does your "PEG ratio below 2.00" apply the same to every sector? Or is it a different PEG ratio for Finance versus Consumer Staples for example? I am looking for insight/education, not questioning your metrics. Thanks as always.
Buyandhold 2012 profile picture

I like to KISS.

Keep it simple, stupid.

That way I don't get confused.

So I like the PEG to be below 2.00 for every stock that I buy.
Thanks for another very good article on investing.
John Rhodes profile picture
@Mr. Blank

Thank you, sir.
Enjoyed this article. Thanks.
John Rhodes profile picture

Thanks for stopping by, reading and leaving a comment.

Enjoy your day.
Spirittalk profile picture
Thanks for your thoughts. I am about to help a 19 year old set up his first portfolio and you got me thinking about allocations. I appreciate it.
John Rhodes profile picture

That's great news.

** Getting started early is like having a superpower. **

19 to 49 is staggering 30 years of growth and compounding.

Blessings and great fortune to you, and him (of course).

Have a great week.
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