So you’re thinking of starting a portfolio, evaluating how your holdings have performed, or considering some portfolio spring cleaning? Here are four types of stocks that every savvy investor should own for a balanced hand. 1. Growth stocks These are the shares you buy for capital growth, rather than dividends. Growth stocks are essentially shares in those companies that are generating positive cash flows and whose earnings are expected to grow at an above-average rate relative to the market. It’s worth remembering that some of the most successful firms in the US economy pay out relatively miserable dividends, such as Warren Buffett’s Berkshire Hathaway. If anything, they are the equivalent of a real estate investment. You buy and hold, riding the appreciating value of the asset. For the first few years you may not make much on the shares but if you hold onto them for long enough, and good quality managers avoid the pitfalls along the way, you’ll be well looked after when other investors hop on board at higher prices. An example in Australia is CSL...(VIEW LINK)