From Kiplinger:
Buying growth stocks can take a leap of faith these days. Sure, you can quickly double your money by successfully picking the next Facebook (FB). But price-earnings ratios today for rapidly growing companies are typically two to three times greater than the overall market’s P/E. Facebook, for example, checks in at 42 times estimated year-ahead earnings. That doesn’t mean rapidly growing companies are bad investments.
But if their growth falters, even by a whisker, the knives will come out quickly.