Growth stocks and value stocks are two primary styles of investing in equities.
📎 Growth Stocks
Characteristics:
• High revenue and profit growth rates (often above market averages).
• Companies may reinvest profits into development rather than paying dividends.
• High multiples (P/E, P/S), as investors pay for future potential.
• More commonly found in the technology sector (e.g., Tesla, Nvidia, Amazon in the past).
💻 Value Stocks
Characteristics:
• Low multiples (P/E, P/B) relative to the market or historical values.
• Stable cash flows and often pay dividends.
• Companies may be undervalued due to temporary difficulties or market neglect.
• More commonly found in "mature" sectors (finance, energy, consumer goods).
Many investors combine both approaches for diversification. Work with us to always get minimal risks in your stocks.
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