[1] Those who follow this style, known as growth investors, invest in companies that exhibit signs of above-average growth, even if the share price appears expensive in terms of metrics such as price-to-earnings or price-to-book ratios.
[3] Buffett has recognized the influence of his business partner Charlie Munger on this view,[4] which is best expressed by the famous Buffett saying "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price".
Also influential in shaping this investment style was Phil Fisher, whose 1958 book "Common Stocks and Uncommon Profits" is still today a reference for identifying growth companies.
Attaching a high price to a security in the hope of high growth may be risky, since if the growth rate fails to live up to expectations, the price of the security can plummet.
It is often more fashionable now to seek out stocks with high growth rates that are trading at reasonable valuations.