What’s the difference between growth and value stocks? Put simply, growth stocks are companies that tend to GROW their revenue or earnings FASTER, and value stocks are companies that are “CHEAP” relative to their earnings or assets. But if you’re thinking “wait a second, those are not exact opposites” you’d be right. A company CAN be a good value AND have strong growth prospects, and OFTEN companies have some “value” AND “growth” characteristics at the SAME time. They can ALSO SHIFT BETWEEN “value” and “growth” OVER time. Facebook, or “Meta” is a good example of a company that grew fast for a long time and was a prototypical “growth” company, then slowed down and sold off significantly making it a “value” company, and if their metaverse investments pay off they could become a growth company again. Not all growth and value companies are created equally, and companies at the EXTREMES like deep value companies that are cheap cuz they’re nearing bankruptcy or high-growth companies that aren’t profitable yet tend to be RISKIER, compared to more CONSERVATIVE “quality growth” or steady-eddy dividend-paying value companies. Instantly Unlock My Free Investing Workshop, "The 9 Habits of Successful Investors" https://www.fundamentalsoffinance.com/9habitsofsuccessfulinvestorsYTO Twitter: https://twitter.com/FoFInvesting IG: https://www.instagram.com/fundamentals_of_finance/ TikTok: https://www.tiktok.com/@fundamentals_of_finance #growthstocks #valuestocks #investing #fundamentalsoffinance

growth versus value stocks