Welcome to the new my.morningstar.com! Learn more about the changes and how our new features help your investing success.

Is Growth or Value the Winning Investment Style?

The labels ‘growth’ and ‘value’ oversimplify the approach adopted by investors - but which bias outperforms over the long term?

Dan Kemp 11.07.2017

Warren Buffett’s business partner Charlie Munger famously said that “all intelligent investing is value investing, acquiring more than you are paying for”. Yet professional investors are regularly defined by their ‘investment style’.

When asked who Benjamin Graham was, most investors would describe him as ‘the father of value investing’ while Peter Lynch was known to focus on investing in companies that he believed would grow faster than average. The labels provide a shorthand to help investors quickly describe the approach of an investor.

In common with other stereotypes, the labels ‘growth’ and ‘value’ naturally oversimplify the approach adopted by investors, especially those such as Graham and Lynch who were highly skilled as investors. Nevertheless, the division between value and growth has become the embedded in the way people think about investment.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Member.

Register For Free

About Author

Dan Kemp  is Chief Investment Officer, Morningstar Investment Management EMEA

Audience Confirmation


By clicking "accept" I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See "Cookie Consent" for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All Rights Reserved.      Terms of Useund      Privacy Policy.
© Copyright 2021 Morningstar Asia Ltd. All rights reserved.

Terms of Use        Privacy Policy        Cookies