Value versus growth investing

Warren Buffett said, "Price is what you pay. Value is what you get." The basic premise of value investing is to buy a stock well below its intrinsic value, which offers a margin of safety. In other words, buy the stock when not many investors are interested in it and then sell it when everyone is vying for it. However, profiting from such a stock may require a long-term horizon. At times, a value stock may test investors' patience for long by providing negative or negligible returns. But once the company gains attention or the company's earnings cycle shows a reversal, the stock turn

This article was originally published on August 05, 2019.