Does Expectations Investing fall into the “growth” or “value” investing style?
Please don’t associate us with either camp! Most professional money managers classify their investing style as either growth or value. Growth managers seek companies that rapidly increase sales and profits and generally trade at high-price earnings multiples. Value managers seek stocks that trade at substantial discounts to their expected value and often have low price-earnings multiples. Significantly, fund industry consultants discourage money managers from drifting from their stated style, thus limiting their universe of acceptable stocks. Expectations investing doesnt distinguish between growth and value; managers simply pursue maximum long-term returns within a specified investment policy. As Warren Buffett convincingly argues, Market commentators and investment managers who glibly refer to growth and value styles as contrasting approaches to investment are displaying their ignorance, not their sophistication. Growth is simply a componentusually a plus, sometime a minusin the valu
