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 Past—the dark unfathom’d retrospect!
The teeming gulf—the sleepers and the shadows!
The past! the infinite greatness of the past!
For what is the present after all but a growth out of the past?”
—Walt Whitman (1819–1892)
“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)