Encyclopedia of Opinion
Question

Is growth investing superior to value investing?

Investors in stocks are often divided into two camps: value invests or growth investors. Over the past few years, growth as an investment factor has vastly outpaced the value factor. This has led to renewed calls of "the death of value investing."

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Growth investing is superior because it focuses on compounding for the long term, whereas value often buys low quality companies that can't grow

This position holds that growth investing is superior to value investing. It argues long-term returns are driven by a company's growth and return on capital—its ability to compound over time—rather than by how cheap its shares appear at purchase.

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No, value investing is superior to growth investing