What's the Difference Between Growth Stocks and Value Stocks?

A growth stock and a value stock are considered by most of the world to be very important distinctions between two entirely different kinds of companies. A growth stock is believed to be a company that's growing very quickly and has a high market value relative to its earnings, while a value stock is thought to be a company that doesn't grow much but has a low price and holds its value. In this video, I discuss the important distinctions between the two and let you know which one aligns with the Rule # Investing Strategy.

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[MarkEdward]

As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

[phoebusapollo]

This video is inaccurate. You just described value stocks when you said low prices with high intrinsic value. Value stocks are not slow. That's incredibly inaccurate. Value stocks cab be fast or whatever. Speed has nuffing to do with it. Value stocks are getting good companies at low prices.

[harikrishnanchandramohan]

Margin of safety left the chat. You could potentially gain 10x in 10 years with Netflix or Nvidia despite insane valuations. What if it went the other way round like Microsoft or Coca Cola from 2000 to 2010. That's why value is the only form of investing. Others are just speculations.

[indexplus]

If you are buying a company worth $10 for $5, you are always value investing. Growth is investing is like buying a $15 worth company for $40 because is growing so fast that one day it will be worth it for having bought it expensive

[prajwalshrestha]

Correct me if I am wrong.

When I hear Warren Buffet talking about value stocks and growth stocks, he mentions that they are not two different things, However, growth does add a positive aspect to a company's value only when the invested capital creates more cash availability later at a rate higher than the interest rate.

So, for that matter, it could be also interpreted as, a company is as valuable unless the management is able to generate incremental cash flow by investing in assets right now meaning that the growth is just a part of equation which defies the market perception of value stocks and growth stocks.

If you could just clarify this, I would be indebted to you

[davidbrooks]

Warren Buffett disputes this he says there's no difference

[michaelb]

What? You have growth companies, which are, usually, just starting to sell on the public market and have a high demand for their supply then you have a value company, which has a balanced and reoccurring demand for its supply.. 2 mins in is what I don't understand, because you can value a cement block as part of a company and sell it as a stock, but then if the stock goes up the cement block is worth x amount of times more... but in the end it's still a cement block and is sold for standard price.

[seanspreckelsen]

Value tends to have decent to good dividends as well. Over the very long term, talking decades here, value tends to outperform growth, they tend to be less risky (less volatility), and do well in times of higher inflation. Growth has the opportunity, however, to make HUGE gains quickly. Currently, the past three months or so, you are seeing value outperform growth, where as in 2020 and most of 2021, growth was killing it.

Buffet tends to lean towards value. His love for coca cola being an example. Berkshire Hathaway has done very well for investors.

I guess I just want to make it very clear for new investors, that value is not inherently worse than growth. I see a lot of newer and younger investors who have made this claim over and over

[EnkhturDamdinjav]

easy to say but impracticable in life - how do you 'value' innovation?

[babajidealufa]

which method do you like most in calculating intrinsic value, is it DCF, NCAV, or others methods

[aryajourabi]

I follow graham stragety and I invest at companies with a moat around them since I was 14
But I think growth and value stock are not diffrent

[stockman]

I bought AAON, INTL & MODN, they look
like they are setting in a Cup and Handle pattern. all show high EPS the
previous quarter and have products that are sold world wide.

[ToTheNines]

“Value investing is a meaningless term for us, we only care about the worth of a company compared to its price”

...wot?

[Tgeroi]

So... how do you know what value it is? and is it accurate?

[marcelomorais]

That was a so good explication.
Thank you so much.

[averythompkins]

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