T. Rowe Price

Foreword

Thomas Rowe Price, Jr. developed the “Growth Stock Philosophy” of investing in the 1930s. His innovative ideas captured the imagination of a Barron's editor who asked him to write a series of articles, published by the magazine in the spring of 1939. Adhering to this philosophy, he successfully invested his clients' money at his new firm for sixteen years. By 1950, his success gave him the confidence to introduce his first mutual fund, the T. Rowe Price Growth Stock Fund, consisting of large well‐established growth companies. Ten years later, he started the New Horizons Fund to invest in emerging growth companies earlier in their life cycle. The Growth Stock Fund ultimately produced the best performance record through its first ten years of any U.S. equity mutual fund, with the objective of growth, income secondary. New Horizons had the best performance for its first five and ten years of any U.S. equity mutual fund. This is according to Investment Companies by Arthur Wiesenberger, the source for mutual fund performance data at that time.

The firm that bears his name has grown to become one of the largest companies in the business of actively managing money in the United States, with more than $1 trillion in assets under management as of March 31, 2018.

The T. Rowe Price Group today still operates under many of the basic tenets of the Growth Stock Philosophy, including a focus on the longer term, a strong emphasis on fundamental research, and the belief that knowing ...