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Anonymous
If you can explain what are the main differences between these two, I would appreciate too. Thanks :)
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Chan Ze Ming
28 Oct 2020
Accountancy and Finance Student at Nanyang Polytechnic
Hello!
Value investing is dead!
Just kidding, although they are seemingly different because one searches for undervalued stocks (buying great company at a cheap price) while the other searches for stocks with huge potential even if the price may be high(company might not be good now but it will in the future) . Both ways of investing are actually very similar and growth investing can even be a subset of value investing. If you're looking for companies huge potential in the future, ultimately you are looking for a undervalued company that that is cheap at its current price point.
I think it is just how we view the company, a tech stock is generally viewed as growth because of the potential in technology while Reits kind of can't be viewed as one (it will grow but not at the level of tech). Hope this helps!
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Hey anon! Here's my personal take on the difference between the two:
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As Warren Buffett and Charlie Munger explained...
"All investing is a type of value investing"
Value investing is putting money into an investment where you believe it will generate you more cash in future.
Be it "growth" or "value" stocks the mindset and purpose is the same... Only difference is the growth rates you attach to the stocks.