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Strategies & Market Trends : Value Investing

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To: Mark Marcellus who wrote (18511)1/22/2004 1:29:48 PM
From: MCsweet  Read Replies (1) of 78958
 
Growth vs. value,

I agree with Paul on this one. In some sense one can say that all investing is "value investing" because everyone tries to buy stocks that are "undervalued." In my mind this definition of value is pretty useless --- it doesn't differentiate a value stock from any other kind of stock except perhaps that you think the value stock is going to go up more.

I am not looking for stocks with large PEs, Price/Books, Price/Sales, and good growth prospects --- what I call growth stocks. I have been a failure in investing in these types of stocks and don't have a huge interest in seeing them. Also, statistically it has been proven that these stocks underperform value stocks over time.

Hence, a growth stock recommendation here or there is fine (or a follow up on a former value stock), but in general I think they'd be better located on another board. In other words, I find the standard (and possibly ignorant?) distinction of growth and value to be a handy distinction and think this board should remain primarily devoted to value.

MC
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