Comments on: The Relation between Value and Growth http://valuehuntr.com/2009/04/06/the-relation-between-value-and-growth/ Mon, 30 Aug 2010 14:37:00 +0000 hourly 1 http://wordpress.com/ By: Sivaram Velauthapillai http://valuehuntr.com/2009/04/06/the-relation-between-value-and-growth/#comment-65 Sivaram Velauthapillai Tue, 07 Apr 2009 16:46:31 +0000 http://valuehuntr.com/?p=622#comment-65 I think most investors, including the pure growth investors, understand what Greenwald is quoted as saying. The problem is that it's extremely difficult to say what is sustainable growth except in hindsight (Is Google's growth and its moat sustainable? who knows.) Those leaning towards growth generally pay up for what they perceive as an ever-expanding moat. Warren Buffett is more of a growth investor than many people realize. What he does is to find a growth company and then buy it when it is really cheap (he doesn't do this as often now though.) I would consider companies like American Express in the 60's, or even Washington Post in the 70's to be growth-type stocks. My opinion is that most growth-oriented investors buy a growth company even if it is not cheap; conversely, I feel that many value-oriented investors completely ignore many growth companies because they don't feel it's ever cheap. Holy Grail of investing is to get both sides right. I think most investors, including the pure growth investors, understand what Greenwald is quoted as saying. The problem is that it’s extremely difficult to say what is sustainable growth except in hindsight (Is Google’s growth and its moat sustainable? who knows.) Those leaning towards growth generally pay up for what they perceive as an ever-expanding moat.

Warren Buffett is more of a growth investor than many people realize. What he does is to find a growth company and then buy it when it is really cheap (he doesn’t do this as often now though.) I would consider companies like American Express in the 60′s, or even Washington Post in the 70′s to be growth-type stocks.

My opinion is that most growth-oriented investors buy a growth company even if it is not cheap; conversely, I feel that many value-oriented investors completely ignore many growth companies because they don’t feel it’s ever cheap. Holy Grail of investing is to get both sides right.

]]> By: widemoat http://valuehuntr.com/2009/04/06/the-relation-between-value-and-growth/#comment-64 widemoat Tue, 07 Apr 2009 04:52:57 +0000 http://valuehuntr.com/?p=622#comment-64 I'm with you. "Value" investing strikes me as a redundant description. A consistently growing company at a fair price may be a bargain; a stagnant bunch of assets could be as well. What I think some people mean by "value investing" is asset-based investing (a la Graham) where balance sheet analysis is key. "Growth investing" then becomes about free cash flows. I see no reason why the smart investor shouldn't be analyzing both for each investment I’m with you. “Value” investing strikes me as a redundant description. A consistently growing company at a fair price may be a bargain; a stagnant bunch of assets could be as well.

What I think some people mean by “value investing” is asset-based investing (a la Graham) where balance sheet analysis is key. “Growth investing” then becomes about free cash flows.

I see no reason why the smart investor shouldn’t be analyzing both for each investment

]]> By: ValueHuntr http://valuehuntr.com/2009/04/06/the-relation-between-value-and-growth/#comment-63 ValueHuntr Mon, 06 Apr 2009 21:02:06 +0000 http://valuehuntr.com/?p=622#comment-63 Thanks Jason, I'm trying to brand the site. Thanks Jason, I’m trying to brand the site.

]]> By: Jason http://valuehuntr.com/2009/04/06/the-relation-between-value-and-growth/#comment-62 Jason Mon, 06 Apr 2009 20:57:36 +0000 http://valuehuntr.com/?p=622#comment-62 Nice post and nice new layout. It's very clean and easy on the eyes. Nice post and nice new layout. It’s very clean and easy on the eyes.

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