Value Vs Growth Investing
Value investing and Growth Investing are often presented as two competing styles of investing. Indeed there are now many Exchange-traded funds available which claim to offer one of the two styles.
| Value Investing | Growth Investing |
|---|---|
| Emphasis on buying shares below their intrinsic value | Emphasis on buying shares in companies with high growth rates |
| Typical Characteristics: | |
| Low P/E ratio | High earnings growth rate |
| Low Price/sales ratio | High sales growth rate |
| Low Price-Cashflow | High return on equity |
| Low Price/book ratio | High profit margin |
| High Dividend yield | No or low Dividend yield |
Read more about Value Vs Growth Investing: Performance of Value and Growth Styles, Warren Buffett On Value Vs. Growth
Famous quotes containing the words growth and/or investing:
“The windy springs and the blazing summers, one after another, had enriched and mellowed that flat tableland; all the human effort that had gone into it was coming back in long, sweeping lines of fertility. The changes seemed beautiful and harmonious to me; it was like watching the growth of a great man or of a great idea. I recognized every tree and sandbank and rugged draw. I found that I remembered the conformation of the land as one remembers the modelling of human faces.”
—Willa Cather (1873–1947)
“After all, the chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing and prospering in the world.”
—Calvin Coolidge (1872–1933)