What’s better: Value or Growth investing?
Value and growth investing are not enemies. They should not be thought of as contrasting strategies, on either end of some imaginary style spectrum. Take this passage from Warren Buffett’s 1992 Shareholder Letter: “But how, you will ask, does one decide what’s ‘attractive’? In answering this question, most analysts feel they must choose between two approaches customarily thought to be in opposition: ‘value’ and ‘growth’. Indeed, many investment professionals see any mixing of the two terms as a form of intellectual cross-dressing. We view that as fuzzy thinking. In our opinion, the two approaches are joined at the hip: Growth is always a component in the calculation of value, constituting a variable whose importance can range from negligible to enormous and whose impact can be negative as well as positive. The term ‘value investing’ is redundant. What is ‘investing’ if it is not the act of seeking value, at least, sufficient to justify the amount paid?” (VIEW LINK) for the full story.
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