Growth Stocks Vs Value Stocks: Which Is Better?
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Over the years, there has been a heated debate of superiority between Growth Investing vs Value Investing as the best investing method. In a five year period, Growth Stocks ETF have generated a cumulative return of 170%, compared to Value Stocks ETF (75%)!
Nevertheless, the performance period between these two investing methods has been in a cyclical manner, where a certain period, Value Investing has performed superior to Growth Investing and vice versa.

From the chart above, Growth Stocks have been performing exceptionally well for the past two decades based on the historical performance.
In this blog, we will learn more about:
- What is Growth Investing and Value Investing
- The characteristics and potential risks of Growth vs Value Stocks
- Which Investing Strategy should you use for your investing stocks
Moreover, we will also be exploring some of the stocks suggestions by online financial sites – Kiplinger and determine if these stocks suggestions are potential stocks to invest in based on our value investing methodology.
Watch our YouTube Live below!
GROWTH INVESTING & GROWTH STOCKS

The S&P 500 sectors in which the growth companies commonly found are in the Technology sector, Consumer Discretionary sector, and Communication Services sector.
CHARACTERISTICS & POTENTIAL RISKS OF GROWTH INVESTING
For Growth Investing investors, they are looking for companies that have the potential to outperform the overall market due to their future potentials.

The main characteristics for growth stocks is that the companies will grow faster in revenues or sales as they are offering products or services that are expected to sell well in the market by investors.
VALUE INVESTING & VALUE STOCKS
Value Investing is another form of investing method where investors buy stocks that are undervalued (cheap) by the marketplace but usually have strong financials. Companies with strong financials are usually found in the Financials sector, Industrials sector and Consumer Staples sector of the S&P 500.
But how do one determine if the share price is undervalued or cheap?

From the diagram above, value investors will determine if a company is undervalued by finding out the intrinsic value (true worth) of the company based on their financial statements.
- If the current share price is below the stock’s intrinsic value, the company is considered to be undervalued or cheap.
- Value Investors will come in to buy the shares after performing due diligence on the company’s background.
- If the current share price is above the stock’s intrinsic value, the company is considered to be overvalued or expensive.
- Value Investors will come in to sell the shares if they deemed the company is no longer valuable in the long term.
Most of us would like to generate an additional source of income as rising inflation and high living costs has been tough on our wallets. One of the ways that we can grow our money is by investing.
CHARACTERISTICS AND POTENTIAL RISKS OF VALUE INVESTING
For Value Investing investors, they will identify and invest in companies whose stock prices are lower than the intrinsic value, known as undervalued stocks.
How do they identify such undervalued stocks?
When a company’s share price is trading below its intrinsic value, most of the time was due to the company may have suffered a temporary corporate scandal, economic or political event hampering the overall industry or during a recession!

Although the company’s share price has suffered a beating and is currently undervalued, if the financials are still strong, value investors may still invest in the company. This is because when the stock rebounds after the bad incident has subsided, it may generate higher returns for the investors!
Compared to growth investing, value investing is a much slower but steadier investment approach. The companies found to be value stocks are usually the larger and more established companies, such as Coca-Cola, Visa and IBM. For these types of companies, there might not be much potential for growth as they are well-established and market leaders of their respective industry. So investors may have to patiently wait for some time to see their portfolio to generate substantial returns in the long run.
To invest in value stocks, due diligence is a must for investors before investing their money. This is because there is potential for the share price to drop further and take a very long time for the share price to rebound, especially if the company is not financially strong.
WHICH INVESTMENT STRATEGY TO USE?
Now that we know the characteristics and potential risks between these two investing methods, one might be asking – “So, which investing method should I be using to achieve my financial goals?” Should I purchase more growth stocks vs value stocks?
Here, we have did a quick comparison on these two investing methods:

From the comparisons, it will be easier for us to determine which investing method that is best suited for our investment goals when we ask ourselves these 3 questions:
- Why do you want to invest? (or what do you want to gain from investing?)
- How long do you intend to invest? (Investor's time horizon)
- How much risk can you take on when investing? (risk appetite)
It’s only when we know the answers to these 3 questions, then we will be able to choose the investing strategy that best suited our personality and risk appetite!
We have also done 3-part articles on exploring the investing strategies of famous value investors, such as Warren Buffett, Charlie Munger and Michael Burry. Click on the links below to learn more on their investing strategies!
RECOMMENDED STOCKS BY KIPLINGER
As investors, we love to search and look for great companies to invest in. For this article, we have explored one of the famous financial sites – Kiplinger on their stock suggestions, three each on Growth Stocks and Value Stocks!

3 GROWTH STOCKS
Darling Ingredients (DAR)
US multinational company that develops and manufactures sustainable ingredients from edible by-products & food waste for their customers in Pharma, Food, Pet Food, Fuel & Fertilizer Industries.
VICI Properties (VICI)
US real estate investment trust that specializes in properties in Gaming, Hospitality, Entertainment and Leisure.
MasTec Inc (MTZ)
- Wireless, wireline & satellite communications
- Oil & Gas pipeline Infrastructure
- Conventional & renewable power generation
3 VALUE STOCKS
Target Corp. (TGT)
US big box department store chain that sells products in:
- Beauty & household essentials
- Food & Beverage
- Home furnishings & decor
- Hardlines
- Apparel & accessories
Procter & Gamble (PG)
US multinational consumer goods corporation that offers 65 brands of consumer care products in:
- Health care & Oral care
- Fabric & Home care
- Beauty (skin & personal care, hair care)
- Grooming (shaving blades)
- Baby, Feminine & Family care
AbbVie Inc (ABBV)
US biopharmaceutical & research-based pharmaceutical manufacturer. Produces drugs for:
- Immune system (Immunology)
- Blood cancer (Hematologic oncology)
- Aesthetics & women’s health
- Neuroscience (e.g. migraine, Parkinson’s & schizophrenia)
- Eye care
CONCLUSION
To conclude it all, the debate between Growth Investing and Value Investing will never come to an end. Both investing styles have different performance periods where they outshine each other which makes it very hard to determine the right time to invest.
See Value Investing in Action
Presented by Cayden Chang
Founder of Value Investing Academy and Award-Winning International Speaker, Lifelong Learner Award 2008, Personal Brand Award 2017
You will learn:
- A deep dive into a fast-growth company case study.
- The key financial metrics used when evaluating whether a stock has strong growth potential
- Step-by-step guide on how to apply the Value Investing Methodology on real-life companies
- The exact criteria that successful investors use when evaluating any company
- How to determine the intrinsic value of a stock so you will know exactly when to enter or exit the market
- How ViA Atlas Intrinsic Value (IV) Directory can get you started on building your own portfolio of superhero stocks, even for busy professionals without much time to spare.
Click the button below to reserve your spot now.

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Robert G Allen

Through the past 40 years, MILLIONS of people have attended his live seminars and his graduates have earned BILLIONS in profits by following his financial advice. Today there are literally thousands of millionaires and multi-millionaires worldwide who attribute their success to Mr. Allen’s systems and strategies. Empowered by his philosophy of the Enlightened Entrepreneur, his students have generously contributed over 50 million dollars to their favorite churches, causes and charities.
As a public speaker, he has spoken to audiences worldwide as large as 20,000 people, sharing stages with the likes of Sir Richard Branson, Tony Robbins, Robert Kiyosaki, Oprah Winfrey, Prime Minister Tony Blair and Donald Trump. In America, the National Speaker Association gave him an award as America's Top Millionaire Maker.
As a trainer and educator, he has spoken to groups all over the world from United States, Singapore, Mexico, Canada, South Africa, Russia, Kazakhstan, Latvia, Slovenia, Australia, Italy, England, Japan, Taiwan, Hong Kong and China. He teaches on the subjects of personal finance, wealth creation, multiple streams of income, entrepreneurship, authorship, sales, marketing and personal growth.
He is a popular media guest appearing on hundreds of radio and television programs including Good Morning America, Regis Philbin, Neil Cavuto and Larry King. He has been the subject in numerous international publications including the Wall Street Journal, The Los Angeles Times, The Washington Post, Newsweek, Barons, Redbook, Money Magazine and The Reader Digest to name just a few.
Ernee Ong

Ernee Ong is the co-founder of Proptiply, a property consulting and investment education company that builds on the concept of co-living to generate rental income. He aims to educate and empower aspiring property investors to attain their life goals through prudent and sound property investing principles.
Ernee is a loving husband to Jelene and a father to two wonderful daughters. Alongside Jelene, he is a co-founder and the driving force behind Proptiply™.
Proptiply™is a Property Education Company that empowers students with a focus on teaching them how to build cashflow by leveraging other people's resources and scaling up. Ernee has achieved remarkable success, moving from living in a 3-room HDB flat to owning a landed property and acquiring an additional one.
Ernee will be sharing insights into how individual Singaporeans or Permanent Residents (PRs) can scale up their property portfolio even with limited resources. His journey has been featured in prestigious media outlets like CNA, the South China Morning Post, and other news channels, showcasing how he managed to build an 8-figure business while overseeing 300+ properties in Singapore.
Vincent Chua

Vincent is a financial planner who specializes in investment and retirement planning. He helps people achieve their financial goals and dreams through comprehensive and customized solutions.
He has nearly a decade of experience in the financial services industry and is a Certified Financial Planner, CFP®. He is passionate about educating people on the importance and relevance of financial planning in today's world.
He grew up in Toa Payoh, a mature estate in Singapore, witnessing many senior citizens struggle with health and financial issues. They often told him that "it's better to be dead than to be sick in Singapore". This made him realize the value of money and motivated him to learn about investments at a young age. Later, he discovered the financial planning industry and decided to pursue it as a career.
He loves what he does because he makes a positive difference in people's lives. Whether it's helping them grow their wealth, protect their income, or plan for retirement, he enjoys seeing them achieve their desired outcomes and live their best lives.
Self-made Millionaire Investor
Liu Feng

Liu Feng graduated from Beijing University and came to Singapore in 1994, and went from having a mere S$100 in his wallet to becoming a millionaire. Armed with a strong determination, he made the majority of his fortune through Value Investing using principles created by Warren Buffett, one of the richest man in the world. Across the years, he has accumulated extensive experience and in-depth knowledge in stock investing.
Liu Feng specialized in stock investment. Since he first read a book about Warren Buffet in 1996, he has since done extensive studies on Value Investing Gurus – Benjamin Graham, Philip Fisher, Peter Lynch and John Neff. Through continuously fine-tuning his investment model, combined with his investment experience, he has founded a set of Investment Philosophies, Value Investing Principles and Methodologies to create passive income. Those who have been taught by him have found his teaching easy to understand as well as benefited from his many years of experience and insight on stock investments.
As an experienced value investor, Liu Feng incorporates real case studies of numerous Singapore-listed companies in his training, coupled with a systematic and proven methodology to provide a distinct advantage in the stock market.
Lauren C Templeton

Lauren C. Templeton is the founder and Chief Executive Officer of Templeton & Phillips Capital Management, LLC. Prior to founding the firm in 2001, Lauren was employed with Morgan Stanley, Homrich Berg, and New Providence Advisors, a hedge fund management company, based in Atlanta, GA.
“Author of “Investing the Templeton Way: the Market Beating Strategies of Value Investing's Legendary Bargain Hunter”, Lauren is also the great niece of Sir John M. Templeton and is a current member of the John M. Templeton Foundation, established in 1987 by renowned international investor, Sir John Templeton. She began investing as a child under the heavy influence of her father as well as her late great-uncle, Sir John Templeton.
About Sir John Templeton
Sir John Marks Templeton was born in 1912, in the small town of Winchester, Tennessee. He attended Yale University and graduated near the top of his class and as President of Phi Beta Kappa. He was named a Rhodes Scholar to Balliol College at Oxford, from which he graduated with a degree in law.
Templeton started his Wall Street career in 1938 and went on to create some of the world’s largest and most successful international investment funds. He was famous for picking companies that hit “points of maximum pessimism” (ie. Rock bottom prices). When war began in Europe in 1939, he borrowed money to buy 100 shares each in 104 companies selling at one dollar per share or less, including 34 companies that were in bankruptcy. Only four turned out to be worthless, and he turned large profits on the others.
Templeton established the Templeton Growth Fund in 1954. With dividends reinvested, each $10,000 invested in the Templeton Growth Fund Class A at its inception would have grown to $2 million by 1992. He eventually sold the family of Templeton Funds to the Franklin Group — scores of them with $13 billion in assets — in 1992, and turned to philanthropies that had engaged him for decades.
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Dr Todd A Finkle

Todd A. Finkle, Ph.D. is the Pigott Professor of Entrepreneurship at Gonzaga University. He has taught for 34 years at 4 different universities, publishing more than 270 articles, books, presentations, and grants.
Dr. Finkle is an expert on Warren Buffett and Entrepreneurship. His recent book titled," Warren Buffett: Investor and Entrepreneur," is published by Columbia University Press. The book traces the entrepreneurial paths that shaped Buffett’s career, from selling gum door-to-door during childhood to forming Berkshire Hathaway and developing it into a global conglomerate through the imaginative deployment of financial instruments and creative deal making.
Dr. Finkle's initial motivation for writing the book was to show the layperson how Buffett evaluates potential investments. Finkle also zeros in on Buffett’s longtime business partner Charlie Munger and his contributions to Berkshire Hathaway's success. Finkle draws key lessons from Buffett’s mistakes as well as his successes, using these failures to explore the ways behavioral biases can affect investors and how to overcome them.
Dr. Finkle is a pioneer and innovator in the field of entrepreneurship education. He has been an entrepreneur of six ventures and consulted with a wide variety of entities including countries and universities from all over the world. Dr. Finkle has been interviewed or appeared in a variety of media outlets including the Cleveland Plain Dealer, Entrepreneur Magazine, Forbes Magazine, Omaha World Herald, Wall Street Journal, The Washington Post, and several radio and television stations.
Cayden Chang

Cayden Chang is the Founder of Mind Kinesis Investments Pte Ltd and Value Investing Academy Pte Ltd, which runs the first and only Value Investing training that is recommended and endorsed by Mary Buffett, the internationally acclaimed author and speaker of how billionaire Warren Buffett invests. His company also runs Value Investing workshops across Asia. With over 50,000 graduates across 11 cities in Asia, his methodology is tested, proven and easily duplicable even for someone who has no prior experience in investing.
Cayden holds two Bachelors’ Degrees and a Masters Degree from National University of Singapore. He has also been trained in value investing by Professor Bruce Greenwald in Columbia University, the institution where Billionaire investor Warren Buffett met Professor Benjamin Graham, as well as by Professor George Athanassakos, the finance professor who holds the Ben Graham Chair in Value Investing at the Richard lvey School of Business, University of Western Ontario.
Cayden has also received the Lifelong Learners Award 2008 from the Minister of Manpower on 18 November 2008, Mr Gan Kim Yong and he was featured in “TODAY” newspaper, “938Live Online News”, “938Live Radio Station”, “Mediacorp Xin.Sg” and “The Straits Times”. He was subsequently featured in “938Live Breakfast Club” Radio, “Channel News Asia AM Live”, “Shareinvestment”, “The Edge”, and “The Exquisite” Magazine for sharing his secrets of financial success.
In July 2010, he was diagnosed with Renal Cancer. Despite being ill, he launched his first charity project in August 2010, where he donated all of the sales proceeds of his book to The Straits Times School Pocket Money Fund, and was featured on 938 Live Radio Station and The Straits Times. His fight with Renal Cancer was subsequently published in The Straits Times and interviewed on 938Live Radio Station. His life story was featured in The Sunday Times on 10 June 2012. He survived terminal stage Renal Cancer (Stage 4) in September 2014 and launched his second book titled “The Book of Hope” to raise funds for cancer research.
