Series 6: 7.2.2.2.1. Growth And Value Strategies

7.2.2.2.1. Growth and Value Strategies

One of the oldest debates among investors is whether it’s better to invest in growth or value stocks.

A growth investing strategy entails making investments in companies that are growing because the growth of the business will cause the share price to rise. Growth investors pay close attention to the income statement (sales and profits) and less attention to the balance sheet (assets and liabilities). Not surprisingly, investors like to invest in companies that are growing, so investors bid up the share prices of growth stocks. As a result of their popularity, growth stocks have, on average, higher