GARP (Growth at a Reasonable Price) investing involves combining the principles of both growth and value investing. When you use GARP as an investment strategy, you look for companies that are undervalued but have a growth potential that is good and sustainable.

GARP investors look for companies that have a growth potential in the range of 10 to 20 percent. This is much lower than the rate of 25 to 50 percent advocated by growth investors.

GARP investors also frequently examine a company’s P/E ratio as it informs them of how the company’s earnings compares to its share price. This is important in determining the sustainability of a company’s growth. GARP investors are more likely to choose stocks with a P/E ratio in the 10 to 20 percent range.

GARP investors prefer to invest in companies with lower price to book ratios (P/B).

If a stock happens to be under or over valued, GARP investors use the PEG ratio to assess a company’s growth potential in relation to its value. A company with a PEG of 1 or less than 1 is regarded by GARP investors as a good indicator for further investigation.

In sum, GARP investors try to attain a balance between growth and value.

Table of Contents

1. Introduction
2. Fundamental Analysis
3. Qualitative Analysis
4. Value Investing
5. Growth Investing
6. GARP Investing
7. Income Investing
8. CANSLIM
9. Dogs of the Dow
10. Technical Analysis 1
11. Technical Analysis 2
12. Technical Analysis 3
13. Technical Analysis 4
14. Jim Cramer’s Strategies
15. Warren Buffet’s Strategies
16. Intrinsic Value