Difference Between Value Stocks And Growth Stocks

Difference Between Value Stocks and Growth Stocks by Mitchell Mauer

Also see a curated list of top hedge fund letters

[buffett]

This article appeared first on The Stock Market Blueprint Blog.

Analysts like to separate stocks into two categories: value and growth. What is the difference between value stocks and growth stocks, and which style provides better returns?

There is no exact definition explaining the difference between value stocks and growth stocks, but each has its own distinct characteristics.

In general, value stocks have low price ratios and growth stocks have high price ratios. Value stocks as a whole have been shown to outperform growth stocks over time.

Future Expectations

The low price ratios of value stocks are a result of investors being cautious about the future...