Comparison of Value investing and Growth investing 

In comparison to growth investment managers, value investment managers don't experience the same highs, but value investing typically do much better during down markets than growth investing. When smart investing, consider both value investing and growth investing. The reasons for this smart investing strategy are as follows.

• No one investment style offers a clear performance advantage:

For all the differences in growth investing and value style investing, and all the short term volatility of their results, long term performance of value investing and growth investing have been remarkably similar.

• Styles (growth style and value style) work in extended, unpredictable cycles:

No investment style does well all the time. In fact, one may prevail for two to five years before stock market conditions change and the other holds sway. Historically, growth investing style and value investing style have performed in definite and opposing cycles. But as with any kind of market timing, it is virtually impossible to predict when an investment style will move in or out of favor.

• Investment Style usually determines short term performance:

This link is so strong that when the market favors a given investment style, all competent investment managers practicing that style will do well, and some will do exceptionally well. By the same token, when an investment style is out of favor, virtually all investment managers who adhere to that style will suffer to some degree. Whenever an investment manager 's performance diverges sharply from that of the overall stock market, investment style is usually the explanation.