Advice: Value vs Growth Investing???
I will seperate this post into 8 parts and hope you could answer one by one if possible.
1. Is it normal for Growth stocks to be have a price much higher than its intrinsic value? Is this ok and sustainable? Take apple for example, is it a good growth stock at this time when its trading at more than double its intrinsic value? Or Microsoft that is trading at 3x its intrinsic value?
2.Also, for how long should you hold a growth stock for? Like, is their a target price or the idea behind this is just to grow indefinetly?
3.Should we cut your losses with growth stock or let them run at a big loss to see if they bounce back?
4.Do companies that are trading below intrinsic value for no serious reason always come back to their intrinsic value? With serious reasons I mean financial reasons and not optics like a scandal and such.
5. Should we sell a value stock as soon as it reaches intrinsic value or is there another “value” that better represents the stocks potencial.
6.WIch one would be better? Is a combination of the 2 a good choice? Like 50% of money to Value and 50% to Growth? Can this ratio be adjusted in Bull vs Bear markets or is there no correlation between the type of market and the performance of this two strategies.
7.Are thes good growth picks? Nextera, Facebook, Microsoft, JD.com , Apple, AGNC?
8. Are thes good value picks? Heidrick & Struggles, XPO Logistics, HP. Mesabi Trust, Omnicom Group?
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