Why Value Stocks are Better Investment than Growth Stocks

According to Investopedia, a value stock is one that “trades at a lower price relative to its fundamentals,” and a growth stock is one that “is anticipated to grow at a rate significantly above the average growth for the market.” Value stocks, by definition, underperform and take time to regain lost ground; whereas growth stocks often … Read more

What is Value Investing?

The essence of value investing is buying a stock at a price that is significantly lower than the intrinsic value of the company. Given that the future price of a stock is uncertain, the main purpose of value investing is to generate wide “margin of safety” in order to protect principal and seek good returns … Read more

How Business Cycle Works with Value Investing

Business Cycle The performance of sectors in the equity market is affected by cyclical factors of the economy. Understanding the patterns of sector performance can help us more effectively manage asset allocation and maximize return of investment at different phases of business cycle. Business cycle approach is a medium – long investment approach, which could … Read more