Growth vs Value: Which Investments Will Outperform?

The age-old growth versus value debate among investors has reignited following the multi-year outperformance of growth investing

T. Rowe Price 13 July, 2016 | 3:17PM
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Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Jeff Rottinghaus, portfolio manager of the T. Rowe Price US Large-Cap Equity Fund, asks growth vs value: will dominance of growth style continue?

Historically, long-term value investors have achieved superior returns to growth investors – with lower overall risk. However, this knowledge would have served investors poorly over the past decade, as growth-oriented stocks outperformed value-focused counterparts by some margin.

Understandably, investors are asking a lot of questions about the outlook for growth and value in light of the recent divergence in relative returns. However, there are good arguments to support the case for both.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alphabet Inc Class C2,303.43 USD-0.77Rating
Amazon.com Inc3,232.28 USD-1.17Rating
Apple Inc124.85 USD-1.12Rating
Facebook Inc A309.96 USD-1.74Rating

About Author

T. Rowe Price  T. Rowe Price is a global investment management firm dedicated to helping clients achieve long term success.

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