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RVB's Market Musings

What began here as an avenue to interact and learn has far exceeded those goals.

If you are a prospective employer, please consider this site a place where you can see my passion for investing...

Tuesday, January 03, 2006

Value investors versus Growth Investors - Who's better?

Value investors like Buffett and Growth Investors like Bill O'Niel argue. Students of these great investors both think they're better than the other. Now, I first think that if O'Niel and Buffett met, they probably wouldn't even talk stocks. They wouldn't because they have no interest in proving others wrong. That's not what successful investors do. They try to invest and make money the way that they know how. So, the answer to the question "Who's better" in my opinion is actually completely irrelevant.

The bottom line is that the both work. Check out last year's performance on the American Association for Individual Investors website. On the "Stock Screens" page, you'll notice that the Ben Graham stock screen was up about 25% and the O'Niel stock screen was up about 27% for 2005 (Ben Graham was Buffett's mentor and wrote the classic Value Investor's manual "Security Analysis" in the 1930's). In that time, the overall S&P500 was basically flat.

So, who's better? Who knows? Who cares? Do what you know. Maybe put them both together??? But, don't tell an investor of a different pool that he / she is wrong. An analyst would probably never have invested in Airtran (AAI) this year, yet the stock was up 45% this year. It's not about being right or wrong, egos have to step aside. It's about growing assets - aka making money and beating the market.


At April 29, 2008 4:19 AM, Blogger oli said...

Hey...do you follow Riverside investment criteria....?its easy to follow...wecan follow that....


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