An Analysis of Value and Growth Investing - 1056 Words

An Analysis of Value and Growth Investing Saint Leo University An Analysis of Value and Growth Investing This essay will define and identify the differences between value stocks and growth stocks. It will also explain the rationale that investors use for purchasing both value and growth stocks, and will identify whether value or growth investing has worked best over the long term. In addition this essay will provide incite as to which of the two investment methods I prefer and a justification for this preference and lastly will identify a recent example of someone who can be described as a value or growth investor and describe their successfulness with the method they chose. Value and Growth Stocks Defined According to our text,†¦show more content†¦This statement suggests that over the very long term that value investing would be best. Value or Growth Investing – My Preference Based on my research of the articles listed in my references, I would have to say that I would prefer to invest in a mix of both value and growth stocks. As an investor who does not have access to large amounts of capital, it simply makes more sense to purchase value stocks at a lower price. However, recent trends suggest that growth stocks are currently in the lead (Bresiger, 2014) so that would influence me to split my investment amongst both styles. Example of a Successful Value Investor As referenced earlier in this essay, Bruce Berkowitz is described as a value investor. In fact, he has been considered one of the top value investors and he won Institutional Investor’s 2014 Money Manager of the Year award as was indicated in the article, STOCK CHARACTER Value investor Bruce Berkowitz profits by sticking to his convictions (Segal, 2013). He won this title through value investments he made in 2011 with Bank of America and AIG. According to the article, â€Å"investors had been badly burned by those stocks in the financial crisis† (Segal, 2013). However, financial stocks rallied and his Fund â€Å"gained 35.54 percent in 2013, exceeding the 32.39 percent return of the Standard amp; Poor’s 500 index† (Segal, 2013). This is a trueShow MoreRelatedSuccessful Approaches For Investing : A Literature Review1325 Words   |  6 PagesSuccessful Approaches to Investing: A Literature Review Introduction Larry Ellison creator of the Oracle Corporation a 447.2-Billion-dollar multinational computer technology corporation, Mark Zuckerberg founder Facebook a 370-Billion-dollar social media service, and Warren Buffet founder of nothing. Among these three men who is the wealthiest? Shockingly, Warren Buffet is the richest with a net worth of 66.4 billion dollars. Warren Buffet utilized his investing acumen to go from a totalRead MoreBill Miller Value Trust1351 Words   |  6 Pages1. This case goes back to the year the 2005. 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