Investing & Markets

Own assets that compound

Novice

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Novice

Note. Education, not financial advice. Past performance doesn't guarantee future returns. For real money decisions, talk to a SEBI-registered advisor whose incentives don't depend on selling you a product.

Concept 18 of 21

debated

Value vs growth investing

Value pays less for the dollar of earnings today; growth pays more, betting on much bigger earnings tomorrow.

Definition

Two competing equity styles: value buys companies cheap relative to fundamentals, growth buys companies with high expected earnings expansion regardless of current valuation.

Step 1

Predict first

In one or two sentences, what do you think this concept means? Wrong is fine; the small struggle is what makes the answer stick.