Investing 101-Page 3

There are three major types of investing:
Which one are you? (You can be more than one)

Growth Investing-Investing in a company that you are expecting to grow in the next 1-5 years

Value Investing-Finding a financially solid company that is trading at a discounted rate. Use the
Price to Earnings ratio to find under valued stocks.
P/E ratio = Price(per share)/Earnings(per share)
Anything 12 and under is considered a great value. Guide to Value Investing here!

Income Investing-Investing in stocks that pay regular payments every quarter of a year. These
payments are called dividends. This is a conservative strategy that produces steady, almost
guaranteed income.


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