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growth vs value


marketnewbie said: "im confused about this whole concept? WHen you're invested (long) then you expect the financial instrument to go up? IS that growth since the price will grow? what's value then? :angry:"

rmelv said: "Neither of these terms have to do with the share price (well value in a way does). Both are referring to the earnings of the company. If the earnings of the company are double that of last year that is an example of a growth stock. If a company has a low PE, low debt to equity, strong margins, a moat, and decent enough growth it can be considered a value stock. This site is very useful. [url]http://www.investopedia.com/terms/v/valueinvesting.asp[/url] [url]http://www.investopedia.com/terms/g/growthinvesting.asp[/url]"

marketnewbie said: "so growth is like riding the wave (goog) and value would be taking achance on a stock that is beat up? (countrywide)"

rmelv said: "Yes most momentum names such as goog are growth stocks. CFC could be a value stock, if they don't go out of business haha."

RupertB said: "For a thorough treatment of "value investing", read the Intelligent Investor by Benjamin Graham (current edition with commentary by Jason Zweig)."

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