When Growth Investing Fails

Growth investing has produced some of the most spectacular wealth creation in history. It has also produced some of the most spectacular wealth destruction. The difference between the two outcomes is almost always visible before the damage is done.

Why This Matters

The seductive mathematics of growth investing — a business compounding earnings at 25% annually for a decade turns ₹1 lakh into ₹9.3 lakh — masks the failure modes that trap most growth investors. Growth stories fail in predictable ways, and investors who understand these patterns can sidestep the majority of catastrophic losses while capturing the genuine compounders.