The Problem with Growth Stocks


In recent years, there has been a misconception that growth investing is better than value investing. You look at the returns of Cathie Wood $ARKK for example, compared to Warren Buffett $BRK.B , you will see that growth investing is outperforming. Actually, value investing is underperforming the market $SPX500 . What exactly is Growth Investing? Why is may not be good for the long term?


Value investing is about buying stocks trading under their intrinsic value. Growth investing is buying stocks based on their growth potential, rather than their intrinsic fundamental value. A growth investor is likely to believe that the market is efficient and may use technical analysis, historical valuations, sector valuations instead of focusing on the fundamentals and numbers of the business.


What's wrong with being a growth investor? In the late 1990s, investors were investing in growth stocks $NSDQ100 without looking at fundamentals. For example, investors invested in Microsoft $MSFT even when it had a PE ratio of 80. The stock crashed during the dotcom bubble burst and they had to wait 16 years to breakeven even though the company kept growing.


Over the long-term, value still beats growth.


Watch the full video on YouTube:

https://www.youtube.com/watch?v=fhG1kS20tSQ&list=UUPO3uUyoXSaFWG-Ldq1mqEQ&index=1


Full analysis of UNFI:

https://ishfaaqpeerally.teachable.com/courses/662813/lectures/30455848


🔬Join my INVESTMENT RESEARCH PARTNERSHIP for all my analysis and research, along with a course for investing for beginners for free🔬

https://ishfaaqpeerally.teachable.com


📚 New to investing? Here's my investing COURSE FOR BEGINNERS with over 150 lectures 📚

https://ishfaaqpeerally.teachable.com/courses/enrolled/721696


🗣️Join my private investing FACEBOOK GROUP for more 🗣️

https://www.facebook.com/groups/IshfaaqInvesting/


💬 Join my DISCORD CHAT 💬:

https://discord.com/invite/t9YvXfU


🌐 WEBSITE - Subscribe for Weekly Newsletter 🌐:

https://www.ishfaaqpeerally.com/



4 views0 comments

Recent Posts

See All