In my opinion value investing makes more sense but I want to know what people think.
2007-01-14 22:20:31 · 6 answers · asked by Rogelio C 1 in Business & Finance ➔ Investing
Well, certainly during the past 6 years value investing has outperformed growth investing by a very wide margin. That does however have something to do with the fact that investors bid up the prices of growth stocks to obserd levels during the late 90s. During that time growth investing outperformed value investing by a wide margin.
Personally, I do prefer value investing. There is a great deal less risk to your capital value investing as those who still owned growth stocks during the 2000-2002 period found out. They may not recover for another 5 years.
But the markets are like a pendulum. They swing one way for a while and then they swing another. Growth stocks currently are very competively priced compared to value stocks and if there is a saying on Wall Street that has withstood the test of time it is "Buy low; sell high".
If there ever way a time to buy growth stocks, that time is now. In fact it is somewhat difficult currently to tell one from the other. GE, LOW, MET, JNJ to name only a very few are in the value stock category.
2007-01-14 23:14:30 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Markets are efficient.
This means that if one strategy was inherently better than the other, noone would use the inferior strategy.
Neither strategy produces consistently superior gains at the same risk level. However, in general, growith investing is higher risk and value investing is lower risk. Even this is a generality - there are high risk/return-strategies for value investing, and low-risk/return ones for growth investing.
-->Adam
2007-01-14 22:44:43 · answer #2 · answered by great_and_mighty_adam_levine 4 · 0⤊ 0⤋
Ultra undervalue investing.
It takes alot of research time but worth the effort.
My latest pick in the Ultra undervalued stock scene is
PBLS.
This is a AMEX stock in penny clothing.
And this you will see shortly.
If you dont have the time for research this type of investing is not for you.
Jockee
2007-01-15 01:07:52 · answer #3 · answered by seriousddneeded 3 · 0⤊ 0⤋
It's a bit of both really to make up the right mix for the circumstances of the time.
Each approach gives a certain perspective when evaluating a given sock.
2007-01-15 03:20:46 · answer #4 · answered by LongJohns 7 · 0⤊ 0⤋
value investing
2007-01-14 22:24:44 · answer #5 · answered by Dr Dee 7 · 0⤊ 0⤋
neither, they both take turns being the better investment of the life of the investment cycle. have a little of both. u need to be diversified.
2007-01-15 01:40:50 · answer #6 · answered by Anonymous · 0⤊ 0⤋