What's the difference between value investment and growth investment? Eight differences between value investment and growth investment In the fund market, there are many kinds of investment styles, and what we hear most are value investment style and growth investment style. What is value investment? What is growth investment? What is the difference between value investment and growth investment? In the eyes of many investors, value investment means buying large-cap blue-chip stocks, and growth investment means buying small and medium-sized board and GEM stocks, which is a superficial and one-sided understanding. < /p > value investment < /p > value investment holds that the price of a stock fluctuates around its intrinsic value, which can be measured by a certain method. In the long run, the stock price tends to return inward to its intrinsic value. When the stock price is lower than its intrinsic value, there will be investment opportunities. For example, value investment is like buying a yuan with 5 cents. < /p > growth investment < /p > growth investment is an investment strategy to select stocks with high growth potential. In most cases, growth stocks have the characteristics of being higher than the average income level of their industries. Growth funds's investment style aims to select companies whose expected profit growth is due to the historical average level, and at the same time, they have value-added potential. The focus of growth is not on the first addition of stocks, but on the expectation that the future stock price growth will be better than the market average level. < /p > specifically, what are the differences between value investment and growth investment? < /p > The difference of investment logic < /p > Value investment seeks to buy when the enterprise is undervalued, and sell when the value returns or is overvalued. < /p > With the rapid growth of logical enterprises with growth investment, it is expected that the stock price will be better than the market average in the future. < /p > different focus < /p > the focus of value investment is the present of the enterprise, that is, the current intrinsic value of the enterprise. Looking for enterprises with high stability and low valuation. < /p > Growth investment focuses on the future of the enterprise, emphasizing the rapid growth of the future value of the enterprise. < /p > seeking different values for enterprises < /p > Investment does not emphasize the company's texture, and there are no special requirements for the company's texture. It pays attention to the low valuation of the company's value. As long as the company's valuation is low enough, it can still be profitable. < /p > Growth investment requires a higher quality of enterprise, which requires a higher growth. < /p > Different valuation requirements < /p > Value investment emphasizes the low valuation of enterprises and attaches great importance to enterprise valuation. < /p > Growth investment does not pay special attention to the valuation of enterprises, and there is no deliberate requirement. Even if the current valuation of an enterprise is on the high side, as long as it has clear growth, it can become an investment target. < /p > Different selling conditions < /p > In value investment, if the stock price of an enterprise can reflect the intrinsic value of the enterprise or the valuation is too high, it should be sold. < /p > growth investment believes that if the enterprise has no higher growth, it is the time to sell. < /p > The probability of success is different < /p > Comparatively speaking, the probability of success of value investment will be higher, because value investment focuses on the present and the future that growth investment focuses on, and forecasting the future is obviously more uncertain. < /p > I hope the above contents are helpful to you.