Money Minute
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Value vs. Growth
Value vs. Growth

When it comes to the stock market, there are two main styles or philosophies to investing. You’re either a Value Investor or a Growth Investor.

If you're a Value Investor, you like to find a good bargain. You're the type of person that prefers to invest in stocks that are selling at a discount and you buy when they are on sale. Over time, you expect the stock to appreciate in price.

If you're a Growth Investor, you're less focused on finding a good deal and are more concerned with finding stocks that have great growth potential. You're hunting for a stock with momentum and is expected to grow at an above-average rate compared to the overall market.

Both styles of investing have unique risks as well as potential for returns. Interestingly, when one style does well, the other tends to be out of favor. For this reason, many professionals suggest having both Value as well as Growth investments to be fully diversified.

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