Machine Learning

The main reason behind this is that many investors prefer to invest in "safe" businesses They believe that safer investments are less risky and give high returns as compared to growth businesses This assumption is incorrect and it is supported by the performance of growth-oriented companies during the financial crisis Growth companies are safer than other businesses because they have solid management, strong brands, and loyal customers Therefore, in a recession, customers may not increase their spending, but they will still buy from a company which has a great reputation They may spend less, but the company still earns higher profits It is also interesting to note that growth companies outperform other businesses in bull markets This is because, as the market goes up, growth companies continue to grow at a steady pace, and their stock prices rise too On the other hand, the stock prices of stable businesses may rise but their growth rate may slow down THE PERFORMANCE OF GROWTH COMPANIES DURING THE FINAN