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
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