Chapter 5

Large Growth: Muscular Money Makers

In This Chapter

arrow Sizing up the size factor in stock investing

arrow Understanding what makes large large and growth growth

arrow Recognizing ETFs that fit the style bill

arrow Knowing how much to allocate

arrow Choosing the best options for your portfolio

Pick up a typical business magazine and look at the face adorning the cover. He’s Mr. CEO. Tough and ambitious and looking for acquisitions under every rock, his pedigree is Harvard, his wife is the former Miss Missouri, his salary (not to mention other perks) exceeds the gross national product of Peru, and his house has 14 bathrooms. (Yeah, I know this seems like a stereotype, but U.S. CEOs do tend to be a rather homogenous lot.) The title of the cover story emblazoned across Mr. CEO’s chest suggests that buying stock in his company will make you rich. Without knowing anything more, you can assume that Mr. CEO heads a large growth company.

In other words, Mr. CEO’s company has a total market capitalization

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