A lot of investors seem to think that just because a share has done well means it wouldn't be a good investment.
If you take that attitude you could miss out on some serious gains.
Think how much Apple, Alphabet (Google), Facebook, Microsoft and Amazon had grown by up to 2013 and yet they have been some of the best performers in the global share market since 2013. Investors shouldn't be afraid of investing in BETANASDAQ ETF UNITS (ASX: NDQ).
The same should be said of some ASX growth shares. Altium Limited (ASX: ALU) was obviously a great buy at $0.09 in July 2011. It may have seemed very expensive at around $13 in November 2017, yet a few months later it's $19.26.
a2 Milk Company Ltd (ASX: A2M) is another example. There was a huge craze surrounding the a2 protein company in late 2015 when supermarket shelves were being stripped bare when the share price was at $1.88. Yet it kept going and going to $8.59 just before reporting season. Now it's up to $11.60.
Great companies executing on their strategy don't usually suddenly turn into rubbish companies. They keep on going.
That's why I'm not afraid of investing in growth shares like REA Group Limited (ASX: REA), Costa Group Holdings Ltd (ASX: CGC), Appen Ltd (ASX: APX) and Ramsay Health Care Limited (ASX: RHC).
Foolish takeaway
Of course, you still need to be comfortable with the value you are investing at but it's very likely they can grow into their valuation. I think this is a much better idea than trying to catch a falling knife that could just keep falling. Growth stocks are the way to go.
