Value or Growth Investing – Which is the Superior Investment Strategy?

Value Investing

There are about a dozen popular investment strategies. Two of them stand out in the crowd as the best due to similar standards of research required; they are value and growth investing. From these two top tier investment methods, which investment strategy is superior, value or growth investing?

Many that are unfamiliar with investing consider value and growth investing as synonymous. The truth is, both are starkly different. First, both have a completely different approach towards risk. Secondly, one places greater emphasis on holding the investment for extended periods of time. A third difference relates to the reliability of the supporting information when researching the potential investments. Finally, one of the methods has a superior dividends payout ratio over the other. 

This article will delve into these four distinct differences and how they play into results. When done, the reader should be able to quantify the value each provides depending on the mindset of the investor. Before getting into the four core differences, readers should understand the emphasis each form of investing has in order to discriminate the four core differences.