An effective growth stock investor will generally have a relatively long time horizon. Many NAIC investors invest in blue chip growth stocks. Blue chips are established companies with long and stable records of earnings and dividends. Blue chips are leaders in their industry groups, and they deliver products and services with a high degree of brand recognition. A special subset of growth stocks are speculative stocks.
Speculative stocks offer the promise of large potential returns, but with a huge amount of risk.
NAIC investors recognize these companies as generally having less than five years of historical public price performance. Stock Selection Guide users generally find that it's difficult to complete an SSG for a speculative company, and most NAIC investors would typically look elsewhere. It can be quite appropriate, depending on personal considerations, to own a few speculative stocks. The problem is that, without a track record, it's hard to spot them or separate them from the others. Income Stocks Income stocks have sustained records of paying higher than average dividends.