ABC of Investment

Value Investing ·          There are two types of fundamental approach or style while investing in stock or equity. ·          Value Investing is one of the two fundamental styles of investment. ·          Value Investing was introduced by Benjamin Graham who was mentor of the legendary investor Warren Buffett. ·     Value Investors buy Value Stocks, which could be under-priced and ignored by investors but have a potential for appreciation. ·            Value  stocks have potential to bounce back in time when its true value is recognised by other investors. ·            Value  stocks usually have above-average dividend yields. ·          Value stocks are less volatile in price fluctuation and more safe regarding investment. ·          Value investing is not a static concept , i.e. a value stock seizes to be a value stock when its true value is realised. ·      Value stocks have high dividend yield and below-average valuation as measured by ratios like Pric

Growth Investing ·   There are two types of fundamental approach or style while investing in stock or equity. ·   Growth Investing is one of the two fundamental styles of investment. ·   Growth Investors buy Growth Stocks, which are expected to grow at a faster rate than other stocks in stock market. ·   Growth stocks are supposed to have a considerable growth in near future. ·   Expansion or growth of growth stocks are supposed to beat inflation. ·   Growth investing is not a static concept, i.e. a growth stock seizes to be a growth stock when it stops growing. ·   Growth stocks have low dividend yield and above-average valuation as measured by ratios like Price-to Earning, Market Cap-to-Sales and Price-to-Book Value.  ·   These stocks may perform best in a growing stock market. But these stocks may be punished first in a cooling stock market.  ·   Example of growth stock in Indian market now ……… Maruti Suzuki.      Happy Investing !!!  দীপ