Have you ever heard of ‘Growth Stocks’ vs ‘Value Stocks’? What exactly are they? Which one is better to invest in?
Growth Stocks
Growth stocks usually refer to companies that are considered to have the potential to outperform the general market due to their future “growth” potential. These companies offer one-of-a-kind products or develop disruptive technologies. The price of growth stocks is usually volatile, and they usually have a higher P/E ratio (price to earning ratio) hence overvalued. Investors buy growth stocks for their price appreciation, and growth stocks companies typically do not pay dividends. Most growth stocks companies are in the technology sector but this is not necessarily always true.
Value Stocks
Value stocks usually refer to companies that are trading below their real value and are considered a “value” buy. These are usually more established companies in established industries. The price of value stocks is usually more stable and the P/E ratio tends to be lower and hence undervalued. Value stocks companies tend to pay dividends. Investors collect dividend income from holding value stocks. Most of the value stocks are in established sectors such as food, finance, and energy, but this is also not always true. In addition, it’s important to note an overvalued growth stock will not be forever growth stock, it’s very possible when its business gets more mature, its growth slows down and eventually, it becomes an undervalued value stock.
Which One to Choose?
Studies have shown mixed results on long-term returns between growth and value stocks. In certain decades value outperformed growth, and in other decades vice versa. If you are going after price appreciation, growth stocks might be better for you; if you are simply collecting dividends, please consider value stocks. However, the best approach is still to own a diversified portfolio including both growth and value stocks so you never miss out on any good companies!
你听说过“成长股”和“价值股”吗？它们到底是什么？投资哪一个比较好？
成长股
成长股通常是指因其未来“成长”潜力而被认为有可能跑赢大盘的公司。这些公司提供独一无二的产品或开发颠覆性技术。成长股的价格通常波动较大，通常具有较高的P/E Ratio（价格/盈利），因此价格通常被高估。投资者购买成长股是因为希望其价格上涨，而且成长股公司通常不支付股息。大多数成长型股票公司都在科技行业，但这并不一定总是如此。
价值股
价值股通常是指交易价格低于其实际价值而被认为其“价值”值得购买。这些通常是成熟行业中较为成熟的公司。价值股的价格通常更稳定，市盈率往往较低，因此价格通常被低估。价值股公司倾向于支付股息。投资者从持有价值股票中收取股息收入。大多数价值股都在食品、金融、能源等成熟行业，但这也不总是如此。另外需要注意的是，一只被高估的成长股不会永远是成长股，很有可能在业务成熟之后，成长放缓，最终变成一只被低估的价值股。
选哪一个？
研究表明，成长型股票和价值型股票的长期回报比较喜忧参半。在某些十年中，价值表现优于增长，而其他的十年则相反。如果您追求价格上涨，成长股可能更适合你； 如果您只是收取股息，请考虑价值股。然而，最好的方法仍然是拥有一个多元化的投资组合，同时包括成长股和价值股，这样你就不会错过任何好公司！
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