OT: Growth or Value?

Finance maggots, you're on. :D

Growth, without a doubt... and the risky high-reward growth at that.

Tech Talk bitch. :D


But if you ask me, in the short run, growth will beat out value, as value stocks have had a good run recently, and are reaching the top. the numbers for the economy are pretty decent and there seems to be a fair amount of pent up money in the system ready to go back into equities. you have to ask is this money speculative or long term in nature; i tend to view it as the former.

long term...a mix between the two, with a healthy dose of international exposure, especially in your growth component

For arguments sake I'll be the contrarian. If value stocks have run up they wouldn't be considered a value now would they ? Find a solid undervalued market first, locate a stock with a sub 25 P/E ratio, do your homework on the rest of the metrics (the most important part), sell it once all the "dumb money" pours in, go buy yourself a congratulatory Rolex. It's just that easy kids !

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Originally Posted by board

For arguments sake I'll be the contrarian. If value stocks have run up they wouldn't be considered a value now would they ? Find a solid undervalued market first, locate a stock with a sub 25 P/E ratio, do your homework on the rest of the metrics (the most important part), sell it once all the "dumb money" pours in, go buy yourself a congratulatory Rolex. It's just that easy kids !

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Since when is a stock with a sub 25 pe (ie...20-24) value?

Value, you have to trade growth to quickly wich will have you paying half your profit back to the Fed at the end of the year.

or.....

you could spilt your money among a few indexes S&P 500, Wilshires and some Int'l, w/ very little expense, and over the long term pretty much beat all the "pros".

Save some for some bonds and reits.

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Originally Posted by Lurch

Value, you have to trade growth to quickly wich will have you paying half your profit back to the Fed at the end of the year.

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Unless you're trading options. They aren't reported to the IRS. And, I vote value for investment purposes. For shorter term trading, anything somewhat volatile.

GARP, baby :biggrin:

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Originally Posted by irul&ublo

Since when is a stock with a sub 25 pe (ie...20-24) value?

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Since the moment i decided to respond with a sarcastic, simplistic and slightly humorous reply.

and yes I know P/E is relative to a stocks price,company growth rates, industry but damn it that stuff just isn't funny.

for future refernce this will be my new sig..."The above post wasn't meant as real investment advice.

being in the business, I'll pass along some good summer reading for you guys, written by one of the better value investors out there (it's 72 pgs but well worth the time to digest it)

http://www.centman.com/PDF/ValueInvDec2004.pdf

growth vs value is really and truly the same argument....as Karl Stall has said, you always want to be in the GARP camp (growth-at-a-reasonable-price) and AVOID like the plague following the crowd....never overpay (never pay a p/e higher than the long term sustainable earnings growth rate...ie. if you are paying a 30x p/e, you'd better believe that the company can grow earnings every year by 30%, which in general is very hard to do)

contrarians almost always make the best investors

food for thought

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Originally Posted by SquawMan

if everyone if buying Baidu, you should be thinking of selling Baidu (as those who paid $150/sh last Friday are probably wondering today)

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Buy Baidu now!! It's a bargain ;)

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Originally Posted by Karl Stall

GARP, baby :biggrin:

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Otherwise known as the "I'll Buy Any Stock that I Damn Well Please, Thank You Very Much" methodology.

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Originally Posted by irul&ublo

or.....

you could spilt your money among a few indexes S&P 500, Wilshires and some Int'l, w/ very little expense, and over the long term pretty much beat all the "pros".

Save some for some bonds and reits.

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UH HUH, good thought...

Unless you have a LOT of time and energy to be on top of all the factors you need to understand.

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Originally Posted by DJMingus

Unless you have a LOT of time and energy to be on top of all the factors you need to understand.

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bottom line is short of inside information it's pretty hard to beat the market.

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Originally Posted by board

bottom line is short of inside information it's pretty hard to beat the market.

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You won't see me day trading!

Pinner as long as it makes money call it whatever you want. All value is in growth.

If you are under 40 Growth
If you are over 40 Value

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Originally Posted by board

For arguments sake I'll be the contrarian. If value stocks have run up they wouldn't be considered a value now would they ? Find a solid undervalued market first, locate a stock with a sub 25 P/E ratio, do your homework on the rest of the metrics (the most important part), sell it once all the "dumb money" pours in, go buy yourself a congratulatory Rolex. It's just that easy kids !

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sub 25PE?? this is completely depend of what industry you are talking about. For example Financial services firms like investment banks Citigroup, JP Morgan etc trade are 12-14

Diversify yo bonds nigga.


ps. It's all about fundamental, fair value, macro trends and sector rotation but what the hell do I know

y'all must diversify, bitches.


Fun question. I like the answers, keep em coming.

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Originally Posted by Pinner

Fun question.

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Says the person that asked it
:nonono2:

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Originally Posted by Pinner

y'all must diversify,

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Diversification is for sissies and ol' ladies who want risk management. Let it ride, bitches!

Nothing beats a good value, except good growth, but both is best.

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Originally Posted by Ireallyliketoski

Nothing beats a good value, except good growth, but both is best.

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Great reply!!