Value investors search for undervalued stocks while growth investors seek to maximize their capital gains through fast-growing companies. Both are popular investment styles that have different goals. Which style do you fit more – value or growth?
You could also fall somewhere in the middle, which is known as growth at a reasonable price (GARP) investing. Take the quiz to find out!
Your investment strategy is growth at a reasonable price (GARP), which combines tenets of both growth and value investing. You look for growth-oriented companies with relatively low price to earnings multiples.
You seek to maximize capital gains and search for companies that are expected to grow at an above-average rate. You seek impressive returns and understand there could be high risk.
You look for stocks which appear to be trading for less than their book value or that the market has undervalued. Billionaire Warren Buffett has focused on being a value investor.
The higher a stock’s volatility, also called beta, the higher the potential price swings in both directions.