Uploaded March 2026 | Updated September 2026, 1 week ago
In this session, we set the table for growth investing as a philosophy by defining growth investing as an approach based upon the presumption that markets misprice growth assets more than assets in place. With this definition in place, we categorize growth investing into four groups: investing in small market cap companies, investing in initial public offerings, screening for growth at a reasonable price (GARP) and activist growth investing. We close the session by looking at the first of these four approaches, small cap investing, by first examining the empirical evidence on a small cap premium, then looking at the volatility of that premium over time periods and end by evaluating the reasons given for why the small cap premium may exist in the first place.
Playlist for class (Intro + 42 sessions): youtube.com/playlist?list=PLUkh9m2BorqnZGADa8cTzeJblmrZY_SqP&si=zI2pk17pJeld4nWR
Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilslides25/session17.pdf
Post-class test: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session17test.pdf
Post-class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session17soln.pdf
In this session, we set the table for growth investing as a philosophy by defining growth investing as an approach based upon the presumption that markets misprice growth assets more than assets in place. With this definition in place, we categorize growth investing into four groups: investing in small market cap companies, investing in initial public offerings, screening for growth at a reasonable price (GARP) and activist growth investing. We close the session by looking at the first of these four approaches, small cap investing, by first examining the empirical evidence on a small cap premium, then looking at the volatility of that premium over time periods and end by evaluating the reasons given for why the small cap premium may exist in the first place.
Playlist for class (Intro + 42 sessions): youtube.com/playlist?list=PLUkh9m2BorqnZGADa8cTzeJblmrZY_SqP&si=zI2pk17pJeld4nWR
Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilslides25/session17.pdf
Post-class test: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session17test.pdf
Post-class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session17soln.pdf
