Equities offer above-average returns in lottery of UK growth

UK GROWTH

It is the possibility of finding big winners that attracts growth investors.

Personally, I have a problem with this; many people have a propensity for irrationality in their hunt for a big win. Take the lottery, for example. Roughly 50% is paid out in prizes while the remainder is split between the Government and the operator. A 50% payout is no inducement for a gamble, and yet every week millions are spent on tickets. The same applies in the equity market, where perceived potential pushes up price. Apart from behavioural issues, there is also the problem of where the next high-growth UK opportunities will come from. It does not look like we are going to have a t...