Discover the Benefits of a GARP Investment with These Experts

  • Growth at a reasonable price (GARP) is an investment theory that is based on the firm belief that stocks should be purchased only when a company has demonstrated consistent earnings growth.
  • Most investors take one of two approaches to GARP investing.
  • P, or growth at a reasonable price, is an investment theory that is based on the firm belief that stocks should be purchased only when a company has demonstrated consistent earnings growth.
  • P investing involves buying companies where earnings are growing faster than their cost of capital.
  • Investors can buy a broad universe of stocks that exhibit this characteristic, including small-cap stocks, mid-cap stocks, or large-cap stocks.

GARP (growth at a reasonable price) is an investment theory that is based on the belief that stocks should be purchased only when a company has demonstrated consistent earnings growth.
The theory was developed by Professor Burton Malkiel of Princeton University and was originally coined as the "GARP strategy" in 1973. Most investors take one of two approaches to GARP investing.



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Meet

Eric Gross

Eric Gross is the Chief Investment Strategist of The Gross Family of Funds. A 25-year veteran of the financial markets, he is a noted authority on global markets and commodities, and a frequent guest of CNBC, Bloomberg, Fox Business, and Bloomberg Radio. A frequent speaker at industry conferences and forums, he is the author of many highly regarded investment books, including, most recently, "The GARP Investment Philosophy: Leveraging the Power of Diversification."

Meet Bill Murphy

Bill Murphy is the founder and lead editor of the Prudent Speculator newsletter and website. He has worked in the financial services industry for more than 30 years, including as a financial planner and derivatives trader.
Christopher Fry
Christopher Fry is a trading instructor, author, and founder of Fry's Electronics (now Fry's.com). He was also one of the founders of Fry's Electronics, a Fortune 500 company.
Robert Friedland
Robert Friedland is the CEO of Ivanhoe Mines Ltd. and executive chairman of Ivanhoe Capital Corporation. Friedland's experience in the mining industry spans more than 40 years.

Meet James Montier

James Montier is a world-renowned economist, bestselling author, and the founder of GMO.
Meet Matthew McLennan
Matthew McLennan is the co-founder of Research Affiliates, a unique firm that offers investment managers, advisors, and their clients access to significant diversification benefits while eliminating high fees.
Meet David Swensen
David Swensen is an Investment Officer at Yale University responsible for managing $37 billion in Yale's endowment.

Meet Laura Rowley

Senior Managing Director and Portfolio Manager, Morgan Stanley's Global Allocation \
"In today's dynamic world, investors face a wide number of opportunities and risks, from health and technology breakthroughs to geopolitical risks. We believe investors need a robust, diversified portfolio that is designed to weather a changing environment.
"In 2015, we launched GARP Investing to help investors build portfolios that take advantage of these new opportunities. We designed GARP Investing to capitalize on the unique opportunities that exist in today's marketplace."
Meet John Miller
Portfolio Manager, Morgan Stanley's Global Allocation \
"GARP Investing is all about taking advantage of new investment opportunities that are created by our changing world," says Miller. "The portfolio was originally designed for clients with longer time horizons and broader risk appetites.
"But in today's environment, when investors are searching for higher returns, we believe GARP Investing may be a great option."

Meet John Mauldin

John Mauldin is Editor and Chief Economist at Mauldin Economics, a MarketWatch columnist, and the author of three New York Times bestsellers: "The Great Reset," "The Great Deformation," and "The End of Growth."
David Rosenberg
David Rosenberg is the chief economist and strategist at renowned financial services firm Gluskin Sheff & Associates Inc., where he has worked for nearly three decades. He is a regular guest on CNBC and Bloomberg, and he is a sought-after speaker at major business conferences.
Tony Sagami
Tony Sagami is the chief investment officer at Morgan Creek Capital Management, where he is responsible for firmwide investment strategy. He previously spent 10 years as a portfolio manager at George Soros' Quantum Fund.

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Meet Laurence Meyer

Laurence Meyer is the founder of Laurence Meyer & Associates, which specializes in GARP investing. Meyer's GARP strategies have generated annualized returns of 11% to 12% for over 20 years.
Meet Brian Rogers
Brian Rogers is president of Brian Rogers Capital Management, which specializes in GARP strategies. Rogers has managed the Equity GARP Fund (GARPX) since 2002, and the fund has generated annualized returns of 10% to 12% since inception.

Meet John Hussman

John Hussman is the founder of Hussman Investment Trust, a hedge fund that consistently outperforms its benchmark. He is the author of "The Investment Answer," which provides a road map for investors to achieve better results.
Meet Brian Feroldi
Brian Feroldi is the founder of ETF Capital Management, a provider of passive exchange-traded fund (ETF) products. He is a former trader and portfolio manager.
Meet Ellen Zentner
Ellen Zentner is the chief investment officer and portfolio manager of The First Trust Advisors, L.P. She manages more than $200 billion in assets.

Meet Chris Puplava

Chris Puplava is a former investment banker and founder of Puplava Capital Management, an investment research advisory. He is also the author of "The Modern GARP Investing System" and "The GARP Investing Toolkit."
Meet Michael Lewitt
Michael Lewitt, Ph.D., is founder and chief investment strategist at MacroVoices. He is a highly respected expert in global macro, asset allocation, and portfolio construction.
Meet Stephen Guilfoyle
Stephen Guilfoyle, CFA, is founder of Focal Point Research & Management. He is an expert in equity analysis and asset allocation. He has more than 25 years of experience managing portfolios for both institutions and individuals.

Meet David Bianco

David Bianco is a renowned investor, and is the creator of the GARP investing strategy. He is also the author of "The GARP Investing Strategy: Growth at Reasonable Prices." Bianco has been on the Forbes Midas list multiple times and is the winner of the 2010 CFA Research Award.

Meet Janet Yellen

Janet Yellen is the former Chair of the Board of Governors of the Federal Reserve System of the United States.
Peter Schiff
Peter Schiff is a veteran investor and commentator on the economy, financial markets, and precious metals.
Felix Zulauf
Felix Zulauf is a professor of economics at Zulauf Asset Management.
Robert Kiyosaki
Robert Kiyosaki is a bestselling author and investor.

Meet Robert Shiller

Professor of Economics at Yale University and co-creator of CAPE

Meet Jeremy Siegel
Professor of Finance at the University of Pennsylvania and co-creator of CAPE

Meet Jeremy Grantham
Founder of GMO LLC and creator of GMO's AlphaDEX

Meet David Blitz
Head of Global Strategy and Chief Investment Strategist at UBS

Meet Jim Paulsen

Chief investment strategist for Leuthold Group

Paulsen, CFA, is the chief investment strategist at Leuthold Group, a Minneapolis-based financial firm. His 40-plus years of stock and bond market experience have earned him a seat on the Forbes Midas List, recognizing the top 100 investment managers in the U.S.
With more than 1,100 client accounts, Paulsen employs a "bottom-up" approach to stock picking with a belief that any investment holding must be fundamentally sound. He also thinks that diversification is the key to long-term investing success.

Meet Charles Biderman

Charles Biderman is the CEO of TrimTabs Investment Research. TrimTabs is a financial research firm providing unique data to help individuals better manage their portfolios. TrimTabs has over $1.5 trillion in assets under management (AUM) and was founded in 1991.
Meet Dan Cook
Dan Cook is the founder of Dan Cook Financial, a wealth management firm with over $1.5 billion in assets under management (AUM). Dan Cook Financial was founded in 1992 and specializes in portfolio management, financial planning, and asset management. Dan Cook's unique outlook on the markets and investing has helped him develop strategies for investors challenging climates.
Meet Dave Lutz
Dave Lutz is the founder and CEO of United Capital. United Capital is an asset management firm that partners with financial advisors and their clients. United Capital provides investment services through advisors to help meet their clients' goals. United Capital was founded in 1995 and has over $250 billion in assets under management (AUM).

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Meet Martin Feldstein

Feldstein is a professor at Harvard University and the former chairman of the Council of Economic Advisers under President Ronald Reagan. In 2015, Time magazine named him one of the 100 most influential people in the world.
He currently serves as the chairman of the President's Council of Economic Advisers.
Feldstein is a member of the U.S. President's Economic Recovery Advisory Board, the Board of Governors of the Federal Reserve System, and the Group of Thirty. He is also the co-director of the CESifo Centre for International Economics. He was the recipient of the 2004 Nobel Memorial Prize in Economic Sciences

Meet David Rosenberg

Investment strategist and chief economist of Gluskin Sheff

Meet Peter Schiff
CEO and chief global strategist of Euro Pacific

Meet Tom Lee
Co-founder and head of research at Fundstrat Global Advisors

GARP investing is the perfect complement to the passive investing trend, and these experts will tell you why.

Meet Martin Armstrong

Martin Armstrong is one of the world's most respected investors. His investment company, Armstrong (AFM), provides investors with an alternative to the GARP (growth at a reasonable price) investment strategy.
Meet Michael Covel
Michael Covel is a renowned author and financial expert. His weekly podcast, The Big Idea, features insights from some of the world's foremost thinkers on markets, futures, and commodities.

Meet Mohamed El-Erian

Chief Economic Adviser, Allianz SE

Former Chief Economic Adviser, PIMCO

Former Head of Fixed Income, Pacific Investment Management Company

Former Chief Economic Adviser, Harvard Management Company

Former Managing Director, Economic Studies, JP Morgan & Co.

In April 2009, Mohamed El-Erian joined Goldman Sachs as a Managing Director. He was later named head of Global Economic Research and later became Chief Economic Adviser.
In 2013, El-Erian joined Allianz SE. He currently serves as Allianz's Chief Economic Adviser.

Meet Larry Kudlow

Why he recommends GARP investing: "GARP investing allows you to take advantage of opportunities that are missed by broad market indices, like bonds and commodities. GARP investing also allows you to tilt your portfolio toward asset classes that are likely to outperform in uncertain times."
Meet James Bianco
Why he recommends GARP investing: "GARP investing lets you take advantage of macroeconomic trends, but in a way that's uncorrelated to broad market indices. It's designed to create a portfolio that performs well over the long term, even when economic conditions are uncertain."
Meet David Bianco
Why he recommends GARP investing: "GARP investing is a simple way to build a diversified portfolio that takes into consideration both macroeconomic trends as well as individual company fundamentals. It enables you to invest in asset classes that are more likely to outperform over time."
Meet John Carter
Why he recommends GARP investing: "GARP investing helps you take advantage of opportunities missed by broader indices. It enables you to invest in asset classes that are likely to outperform over the long term, even when economic conditions are uncertain."
Meet Greg Guenthner
Why he recommends GARP investing: "GARP investing is a simple way to build a diversified portfolio that considers both macroeconomic trends as well as individual company fundamentals. It enables you to invest in asset classes that are likely to outperform over time."

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Meet Jeff Gundlach

Chief Investment Officer, DoubleLine
310 Wall St, 10th Floor
Los Angeles, CA 90071
310-414-8700

"The GARP (Growth at a Reasonable Price) investment philosophy is based on the idea that long-term, high-quality growth that exceeds inflation can be achieved with a disciplined and diversified approach to stock picking. The portfolio is made up of companies that we believe have attractive long-term growth prospects and that are trading at a reasonable price," explained Gundlach, CFA, CAIA, CIM, who is quoted as an expert on GARP investing.

Meet Joel Greenblatt

Joel Greenblatt is a highly successful investor, hedge fund manager, and the author of the 2004 bestselling book The Little Book That Beats the Market. Greenblatt is known for identifying high-quality small-cap companies with strong competitive advantages, and then investing in those companies at deeply discounted prices.
Greenblatt's firm Gotham Asset Management manages a concentrated portfolio of 15 to 20 equity positions. He also manages an annual charitable trust called the Magic Formula Giving Fund, which donates 85% of its annual income to charities.

Meet Mark Spitznagel

Mark Spitznagel is co-founder and CIO of Universa Investments. He is considered one of the "masters of risk," known for the innovations and strategies he has introduced in the field of risk arbitrage. Spitznagel has written two best-selling books, "Alpha" and "The Dao of Capital."
Spitznagel's firm, Universa Investments, is an investment management company dedicated to creating portfolios of risk arbitrage strategies. The firm has assets of $14.1 billion.
Meet Andrew Berkin
Andrew Berkin is founder and CEO of Berkin Global Advisors. His company specializes in creating customized portfolios of distressed debt strategies. Berkin manages $600 million of assets under management (AUM).
Meet Edward Hadas
Edward Hadas is a portfolio manager at Federated Investors. He focuses on long/short equity strategies. Hadas has $2.2 billion in assets under management (AUM).

Meet Ray Dalio

Ray Dalio's career spans more than 40 years and includes founding and managing three successful hedge funds. Dalio is a founder of Bridgewater Associates, which manages more than $150 billion in assets. (Learn more about Dalio and his investing philosophy here.)
Meet Paul Tudor Jones
Paul Tudor Jones is known as one of the legendary traders of our time. As the founder of Tudor Investment Corporation, Jones turned $5,000 into more than $600 million. Jones founded his own hedge fund in 1980 and now has $10 billion in assets under management. (Learn more about Jones and his investing philosophy here.)
Meet Ray Dalio and Paul Tudor Jones
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Meet Paulsen's Investment Letter

Paulsen's Investment Letter, which has been published since 1974, was one of Barron's top-performing newsletters in 2020.
Paulsen's Investment Letter seeks to achieve above-average returns through fundamental stock analysis. The newsletter focuses on the small-to-mid-cap space, and seeks to take advantage of market inefficiencies. Paulsen's Investment Letter has returned an average of 16.6% a year for a client base of more than 50,000 investors since 1998.
Paulsen's Investment Letter offers three subscription options:

• Monthly ($375)
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What's in This Episode?

1. Doug Kass, president of Seabreeze Partners Management, and co-host of "Market Check" on CNBC, explains why he considers Goldman Sachs to be undervalued.

2. Andrew Berkin, chief investment officer at QS Investors, comments on Goldman's exposure to the oil market.

3. John Taylor, president of Capital Advisors, Inc., explains why he's bullish on Goldman.

4. Andrew Smithers, editor of the report "Goldman Sachs: A Buy" from The Motley Fool, explains why Goldman is a good buy now.



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Term of the Week

Inverse volatility strategy (GARP)
First, what is a GARP investment? GARP is an investment strategy that involves the purchase of short-term, inverse-duration investment strategies, such as VIX futures and options, that use futures and options on VIX futures.

GARP is an investment strategy that attempts to profit from a decline in volatility. If volatility declines, investors are able to enjoy stable markets. If volatility increases, investors can suffer losses.