Value vs. Growth

Value and growth are two investment styles. Value investing involves buying stocks that seem undervalued compared to their true worth, often based on financial metrics, expecting their prices to rise as the market recognizes their value. Growth investing focuses on companies with strong earnings or revenue growth, even if their current prices appear high, anticipating that their expansion will lead to significant future gains. Essentially, value stocks are about buying when prices are low relative to fundamentals, while growth stocks are about investing in companies with high potential for future expansion.