What is Value Investing?

There's a lot of chatter about value investing vs growth investing, but what actually is the value style of investing? 

Emma Rapaport 28 April, 2021 | 9:21AM
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Pound symbol in shopping trolley

Some people believe in Father Christmas. Others believe in the Tooth Fairy. And many investors believe that value stocks will outrun growth over the long-term and be a lot less volatile along the way.

Is the value advantage a myth that belongs in the land of St. Nick? Those investing during the growth-driven 1990s and 2010s would say yes. Academics and value-fund managers, on the other hand, would say no. Who's right?

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Emma Rapaport  is editorial manager for Morningstar Australia.

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