Fundamental Growth
Publication
, Journal Article
Arnott, R; Brightman, C; Harvey, CR; Nguyen, Q; Shakernia, O
Published in: Financial Analysts Journal
January 1, 2026
Conventional growth indices suffer from two important shortcomings. First, stocks that are anti-value (very expensive) are not necessarily growth stocks. The decision to include a stock in a growth index should be based on fundamental growth measures, such as growth in sales, profits, or R&D spending, rather than price-based measures. Second, when these indices are weighted by objective measures of growth, rather than by market value, performance markedly improves. Overpaying for growth is unhelpful. We also assert that some stocks with poor growth prospects and unattractive valuations may have no place in either value or growth indices.
Duke Scholars
Published In
Financial Analysts Journal
DOI
ISSN
0015-198X
Publication Date
January 1, 2026
Related Subject Headings
- Finance
- 3502 Banking, finance and investment
- 3501 Accounting, auditing and accountability
Citation
APA
Chicago
ICMJE
MLA
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Arnott, R., Brightman, C., Harvey, C. R., Nguyen, Q., & Shakernia, O. (2026). Fundamental Growth. Financial Analysts Journal. https://doi.org/10.1080/0015198X.2026.2627219
Arnott, R., C. Brightman, C. R. Harvey, Q. Nguyen, and O. Shakernia. “Fundamental Growth.” Financial Analysts Journal, January 1, 2026. https://doi.org/10.1080/0015198X.2026.2627219.
Arnott R, Brightman C, Harvey CR, Nguyen Q, Shakernia O. Fundamental Growth. Financial Analysts Journal. 2026 Jan 1;
Arnott, R., et al. “Fundamental Growth.” Financial Analysts Journal, Jan. 2026. Scopus, doi:10.1080/0015198X.2026.2627219.
Arnott R, Brightman C, Harvey CR, Nguyen Q, Shakernia O. Fundamental Growth. Financial Analysts Journal. 2026 Jan 1;
Published In
Financial Analysts Journal
DOI
ISSN
0015-198X
Publication Date
January 1, 2026
Related Subject Headings
- Finance
- 3502 Banking, finance and investment
- 3501 Accounting, auditing and accountability