Never going out of style
By: Marchello Holditch, CFA, Vice-President, Multi-Asset Management
Within equity investing, the two main investment styles are value and growth. Value investing typically consists of trying to buy companies “on sale” or picking stocks that have low prices in relation to factors such as earnings, sales, and the book value of the issuing companies. Growth investors seek capital appreciation in stocks that they believe will provide faster-than-average increases in share price in the future. Relative performance between value and growth investment styles tends to oscillate in cycles. Recently, growth has had the upper hand. However, if we measure cumulative returns over the past 40 years, value holds the advantage.