The road to riches - the case for investing in growth shares
I believe the chart (right) makes an irresistible case for buying and holding great growth shares. The chart is of a UK engineering company, called Rotork, which designs and makes special devices called actuators for controlling valves. A muscle is a type of actuator. Rotork is the world leader in this business and has done very well in a world that needs to transport ever increasing quantities of liquids, from oil to water, from one place to another. Including dividends reinvested the shares are up 684-fold since the mid 1970s! All the signs are that this now totally global business will continue to grow at an exciting rate for as far ahead as the eye can see. Warren Buffett, often mistakenly characterised as a value investor, made his fortune by buying great growth shares like Coca-Cola and The Washington Post Group which have multiplied profits many fold over the years. He says he will never sell. The trick, of course, is to find them. On Quantum Leap that is exactly what we do.
Quentin Lumsden, editor.