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.
This information in the Financial Tips section is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.