Growth vs Value Investing: It’s Not One or the Other

Different investors take different approaches. The two most widely recognised styles in equity markets are growth and value. Sometimes the debate around which approach works best can feel like a religious war, with both sides dogmatically arguing their case. In our view, however, all investments need consideration of both a company’s growth prospects and its valuation – the two are intrinsically linked. More broadly, maintaining exposure to both styles in a portfolio can be beneficial. Different strategies perform better under different market conditions. A well-diversified mix can enhance a portfolio’s resilience over the long term.