Helping Self-Directed Investors Succeed Blog - Value vs. Growth

Value vs. Growth

March 2nd, 2012

In our view there are two major categories of investors or investment explorers. Those that seek growth and value. Both types of investing are popular and investors have been successful using both approaches.

The interesting exploration topic for us is which is suitable for the retail investor?

Our short answer is that a value investing approach is suitable for a long term retail investor and a growth investing model works typically for a short term investor.

Growth Investing is to some extent more dynamic than Value Investing and short term changes are not fully avoidable in that approach.

Value Investing requires patience and hence a longer term comes into play predominantly.

But the distinction blurs significantly for a mutual fund or an ETF investor who typically chooses a blend of investment funds that include growth and value and typically those investments are held long term.

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