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Difference between growth and value investor

F

fischer

Member
Am I right in thinking that a value investor is one who seeks investments with:
High future profits and so dividends and so high price
Good accounting values and ratios
High volatility and so have high risks associated with it
Low asset backing
Or is the opposite true?
 
If I remember correctly, value stocks are those which have low p/e ratios, they have high profit in relation to their market cap. This should mean high (current) dividends relative to investment.

Growth stocks are those you expect to have high growth, and you pay more for that.

Using the relationship i=d+g
Value are those which have a greater lean to the d (dividend) side of return and growth have more of a lean towards g (growth), with all other things equal.

I suppose you could get risky value and risky growth, even though growth sounds riskier.

"Good accounting ratios" could mean anything. Surely you wouldn't want to invest in something with unsound accounting ratios. Need to say what "good" is.
 
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