Growth Investing vs. Value InvestingWhere growth investing seeks out companies that are growing their revenue, profits or cash flow at a faster-than-average pace, value investing targets older companies priced below their intrinsic value. Historically, value investing has outperformed growth investing over the long term. One recent article noted that growth investing had outperformed value investing over the last 25 years. The Future of Growth InvestingSome believe the recent trend favoring growth investing will eventually end, with value stocks once again outperforming a growth strategy. A Blended Approach: Growth Investing + Value InvestingThere’s no need to exclusively pursue a growth investing or value investing strategy.
Source: Forbes September 15, 2020 11:48 UTC