Which investment strategy involves purchasing assets with the hope of selling them at a higher price?

The investment strategy that involves purchasing assets with the hope of selling them at a higher price is known as growth investing. This approach focuses on identifying companies that exhibit signs of above-average growth, often characterized by increasing revenues, expanding market share, or innovative products. Growth investors look for stocks that they believe will appreciate significantly over time, based on the company's potential to outperform the market. This strategy relies on the belief that the value of these assets will increase, enabling a profitable sale in the future.

Growth investing typically involves a higher risk tolerance since these investments can be more volatile, but the potential for substantial returns can attract investors willing to take that risk. In contrast, income investing focuses on generating regular income through dividends or interest rather than capital appreciation, while value investing emphasizes buying undervalued assets based on their intrinsic worth. Active trading usually involves shorter-term investments to capitalize on market fluctuations rather than holding assets for long-term appreciation.