His 'memos' are a great source of learning for any investor. Here we have presented six insights (through several excerpts) from a memo where he details his numerous conversations with his son (who is what most people would call a 'growth investor') about the clash between value and growth investing. The memo can be accessed at https://bit.ly/3PyjuIY.
This is one of the best memos written by Howard in the past few years. After reading it, your understanding of investing, in general, and value investing, in particular, will enhance multi-fold.
1 THE DIVISION BETWEEN VALUE AND GROWTH INVESTING IS WRONG
My belief,... ..., is that the two should never have been viewed as mutually exclusive, to begin with.
Value can be found in many forms. The fact that a company grows rapidly, relies on intangibles such as technology for its success and/or has a high p/e ratio shouldn't mean it can't be invested in on the basis of intrinsic value.
The fact that a security carries high valuation metrics doesn't mean it's overpriced, and the fact that another has low valuation metrics doesn't mean it's a bargain.
2 WHAT VALUE INVESTING SHOULD BE
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Esta historia es de la edición September 2022 de Wealth Insight.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
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