Value Stocks Vs. Growth Stocks ! Value Investors Vs. Growth Investors!! Explained in Simple Terms! (#80)
Value Stocks Vs. Growth Stocks!
What Are Value Stocks? '&' What Are Growth Stocks? <<Basic!>>
---->> Value Stocks are such stocks that hold Value. Investing in these is kind of like Value Investing!
---->> Growth Stocks are such stocks that hold the power to outperform the entire market within a specific period of time.
The Major Difference between Value Stocks & Growth Stocks is that.... Value Stocks are not very high priced.... As I said this is kind of like Value Investing; hence, these Stocks are below "The 'Intrinsic Value'!"
You May Also Read: What Is Value Investing?
While, Growth Stocks may or may not have high prices than average Stock's Prices!
But the thing is that Both the Stocks requires us to do Fundamental Research in order to invest in them or else we might face a loss.
Value Investors Vs. Growth Investors!
Value Investors are kind of like Bargainers, they tend to invest below a stock's intrinsic/face value.... As they are well aware of the stock price touching it's intrinsic value in the long term & giving returns! Because they Invest in undervalued stocks...., there is less at risk; that means even if the Company goes Bankrupt they would not be loosing large chunks of money!
Growth Investors are kind of aggressively Investing one's. They go with the trends & Invest in those Companies that can outperform the Market. They do their research & analyse current Economy's & Market's trends. There investments may be for Short Term or evn for Long Term.
Also Read: Long Term Vs. Short Term Investors! Which One Is More Likely To Give Higher Returns!
Overall, both the Investors pays attention to the fundamental & do fundamental research before making any decisions!
So, that was it for today.... Hope you enjoyed reading this article!
Thanks For Reading!
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