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GARP Investing

What is GARP Investing?

Growth at a Reasonable Price (GARP) is an investment strategy that aims to strike a balance between growth and value investing - potentially helping investors capture growth while safeguarding against the pitfalls of overvaluation.

Often, these two areas of investing are like a pendulum, switching between one another. GARP is a uniquely positioned strategy that sits at the intersection of both.

Companies that exhibit GARP characteristics have a combination of three different styles:

  • Growth - looking for companies with strong revenue and earnings growth.
  • Value - looking for companies that are trading relatively cheaply compared to their intrinsic value.
  • Quality - looking for companies that have solid financial strength and good fundamentals.

By combining these factors, GARP investing offers a balanced, disciplined approach that avoids paying too much for hype while still capturing long-term growth potential.