There are different types of investors, but you can broadly classify them into two core categories — income investing, and growth investing.
Income investing is geared more towards the receipt of dividends that help to generate an additional source of passive income.
As such, the main focus is on ensuring that the business generates sufficient cash flow to sustain its payments.
Growth investing, on the other hand, relies on the growth of the underlying business to generate capital gains for the investor.
Simply put, as the business grows its revenue, profits and cash flows, it becomes more valuable, thereby garnering a higher share price.
Investing in growth is, therefore, an attractive method of not just beating inflation but also increasing your total funds for retirement.
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