There is always a debate in stock market to invest either in value or growth type of stock. Value stock emphasize on the fundamental date, ie, earning, return on assest. An example of value stock is UST. Growth stock focus on the stock price's growth above average of the relative industry. An example of growth stock would be goog. Few days ago, my company's 401k provider come to my company and give a presentation of the overall stock market over last 20 years. There are an interesting data which compare the performance of value and growth stock. Check out the above table.
It's clearly shows that value beat growth in every size of market. This is a good indicator that for long term success in stock market, we should focus on value than growth.
4 comments:
529er, I read the differences between value and growth stock, but I am still a little confuse.
What is fundamental date?
Charlene,
fundamental data focus on companys' balance sheet and financial statment to analyze and determine the company's performance. It is used mostly for value stock analysis.
amazing data! I was educated by investment book that growth stock would beat value stock. I was totally wrong! I really appreicate your sharing. Please keep up the blog. It's been very fun to read and it really helps me to build wealth!
mangopudding, thank you for your interest and support: Let's Build Wealth Tonight :)
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