Growth vs. Value Investing—How Do These Two Styles Differ?
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Two of the most common investing styles are growth investing and value investing. These styles can be at the opposite ends of the stock selection spectrum: to select a growth stock, investors look for companies that have current and future earnings growth potential; to select a value stock, investors look for stocks that based on their analysis are currently undervalued. What is the difference between growth and value stocks, what are some potential investor biases for each, and is one style ultimately better than the other?