Growth Vs. Value Investing: And the winner Is

Ibbotson, Roger G.; Riepe, Mark W.
June 1997
Journal of Financial Planning;Jun97, Vol. 10 Issue 3, p64
Academic Journal
This article defines and differentiates the significance of growth and value as they correlate with investments in the U.S. Business analysts still agree on broad characteristics of stock value and growth. In general, managers that are focused on growth invest in companies experiencing rapid growth in earnings, sales or return on equity. On the other hand, value-oriented managers look for unpopular stocks (such as stocks of companies experiencing problems but that are expected to recover, including bankruptcy restructuring), or more generally, stocks whose assets are undervalued by the market.


Related Articles

  • Růstová a hodnotová investiční strategie aplikovaná na vybraných akciích z New York Stock Exchange. Gottwald, Radim // Trends: Economics & Management / Trendy: Ekonomiky a Managementu;2014, Vol. 8 Issue 20, p22 

    Purpose of the article: Nowadays, investors use many investment strategies. They can realize different profits using different strategies because of different principles of strategies. Author assesses two investment strategies. Calculating different financial indicators leads to comparison of...

  • Quantitatively Speaking. TORTORIELLO, RICHARD // Equities;Jan2009, Vol. 58 Issue 1, p10 

    The article discusses an investment screen that employs a strategy called economic profits to measure profitability. The economic profits can be determined by calculating a company's return on invested capital (ROIC) and the valuation factor can be used to find out if the companies in the screen...

  • Midcap funds with large potential.  // Dow Theory Forecasts;5/15/2006, Vol. 62 Issue 20, p2 

    The article presents information on the better performance of midcap growth funds by citing examples of some of them. Over the last three years, the average midcap growth fund has returned 20.7% annually, compared to 22.7% for small-cap growth funds. Fidelity Leveraged Company Stock fund had a...

  • Temper your expectations. COOPER, MAHESH // Finweek;6/11/2015, p31 

    The article reports on the business performance of investment management company Allan Gray Ltd. and the condition of the equity market in South Africa as of 2015. Topics discussed include the possible emergence of lower real returns based on long-term historical data and high asset valuations...

  • Alternative valuation techniques for predicting UK stock returns. Dunis, Christian; Reilly, Declan // Journal of Asset Management;Dec2004, Vol. 5 Issue 4, p230 

    Using daily data over the period 31st December, 2000, to 31st December, 2002, and five variables to categorise a panel of 689 stocks from the FTSE All-Share Index along a value--growth dimension, this paper analyses the investment returns obtained from the best decile portfolios of 'growth'...

  • 2. A good bet for the long-term investor.  // Fundweb;2/8/2013, p19 

    The article presents statistics on long-term investment outcomes including principal amount and income from a &163; 10,000 investment.

  • Active Management Linked to Strong Endowment Returns. McGuinness, Kevin // Plan Sponsor News;2014, p95 

    The article presents a study from the Commonfund Institute which reveals the connection between active investment management and high endowment returns in equity asset classes in the U.S. It states that the endowments with a designated chief investment officer will earn a positive returns from...

  • Conditional style rotation model on enhanced value and growth portfolios: The European experience. Bird, Ron; Casavecchia, Lorenzo // Journal of Asset Management;Feb2011, Vol. 11 Issue 6, p375 

    This article analyses the extent of the excess returns that can be generated within the European markets by rotating one's portfolio between value and growth stocks. Academic and professional attention has been devoted in the past to the analysis of the potential value-enhancement generated by...

  • Google Needs an Infomercial. Garnett, Doug // Response;Jan2010, Vol. 18 Issue 4, p53 

    The author offers his insights on the need of the web service provider Google Inc. for an infomercial. He states that the company's engineers have gave their best to position the company for additional profits. He mentions that infomercials could give good return on investment (ROI) and are of...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics