The lifecycle of investing approach is a framework that states that markets, industries, companies and stocks typically move through five stages over time. These stages are: 1) distressed, discarded and/or undiscovered, 2) value, 3) growth at a reasonable price (GARP), 4) growth and 5) momentum.
The lifecycle analysis and an appreciation for a company’s evolution through the cycle often lead us to ask whether a company will be perceived as better (up the cycle) or worse (down the cycle) over a reasonable investment horizon. – Michael Karsch..
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