Long-Term Growth (LTG)

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Definition of 'Long-Term Growth (LTG)'

**Paragraph 1: What is Long-Term Growth?**

Long-term growth (LTG) is the increase in the value of an asset over a period of time, typically measured in years. It is often used to refer to the growth of stocks, but it can also be used to describe the growth of other assets, such as real estate or businesses.

**Paragraph 2: How is Long-Term Growth Calculated?**

There are a few different ways to calculate long-term growth. One common method is to use the compound annual growth rate (CAGR). The CAGR is calculated by taking the ending value of an asset and dividing it by the starting value, then raising that number to the power of 1 divided by the number of years. For example, if an asset starts at $100 and grows to $120 over two years, the CAGR would be 5%.

**Paragraph 3: What Factors Affect Long-Term Growth?**

There are a number of factors that can affect long-term growth, including:

* The overall economic environment
* The industry in which the asset is located
* The company's financial health
* The management team's ability to execute its strategy

**Paragraph 4: Why is Long-Term Growth Important?**

Long-term growth is important for a number of reasons. First, it can help investors build wealth over time. Second, it can help companies increase their value and attract new investors. Third, it can help economies grow and create jobs.

**Paragraph 5: Conclusion**

Long-term growth is a key factor to consider when making investment decisions. By understanding the different factors that can affect long-term growth, investors can make more informed decisions about where to allocate their money.

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