• Value investor's buy stocks (even those whose intrinsic value may show little growth in the future) out of conviction that the current value is high relative to the current price.
• Growth investors buy stocks (even those whose current value is low relative to their current price) because they believe the value will grow fast enough in the future to produce substantial appreciation.
Thus, it seems to me, the choice isn’t really between value and growth, but between value today and value tomorrow. Growth investing represents a bet on company performance that may or may not materialize in the future, while value investing is based primarily on analysis of a company’s current worth.
“The Happy Medium,” July 21, 2004
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