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investing 2026-04-18

Value vs Growth Investing

Two enduring investment philosophies that have traded leadership for decades.

Value and growth are the two main investment styles.

Value Investing

Buy companies trading at a discount to intrinsic value:

  • Low P/E, low P/B
  • High dividend yield
  • Strong FCF
Champions: Graham, Buffett, Marks.

Growth Investing

Buy companies expected to grow earnings faster:

  • High earnings growth
  • High revenue growth
  • Expanding margins
Champions: Fisher, Lynch, Wood.

Performance History

  • 1990s: growth dominated (tech bubble)
  • 2000s: value dominated
  • 2010s: growth dominated (FAANG)
  • 2020-2025: leadership traded
Mean reversion is real but unpredictable.

GARP Hybrid

Growth at a Reasonable Price. 15-25% growth at 15-20x earnings.

Quality Screen

Strong balance sheet, consistent FCF, capable management, competitive moat.

Behavioral Trap

Investors chase whatever style won the last 5 years.

Educational only. Not financial advice.