Should You Buy Value Stocks or Growth Stocks? Warren Buffett's Investing Advice May Come as a Surprise.
Investors often group stocks into two broad categories: growth and value. Some even define themselves based on which quality they see as most important. Growth investors generally focus on companies expected to grow sales or earnings more quickly than the market average, while value investors generally focus on companies trading at discounts to their intrinsic values.
Both strategies have merits and faults. Growth stocks may offer more upside, but that benefit comes with greater risk and volatility. Conversely, value stocks may offer less upside, but that drawback is often counterbalanced by more stable returns. So is it better to buy growth stocks or value stocks?
Warren Buffett has weighed in on the topic a few times over the years, and his answer may surprise you.
Source Fool.com
