Understanding Stock Investments by Style


Do you know what kind of investor you are? Most people are not even aware that there is more than one type, but there are. In fact, many investors don’t fall perfectly into one category or another, but they have some mixture of a few. Stock investments by style can be broken down in multiple ways as well, but the two most popular are value and growth stocks.  
 
Growth stocks
These are the stocks of companies that are growing at a rapid clip. Many investors are happy to pay more for these types of stocks because they are getting in on a company that has been accelerating rapidly. Paying up for that growth is what people will do. The companies represented in as growth stocks are likely to be names that the average person has heard of, and that makes them more comfortable to invest in for some people.  
 
Value Stocks
Investors sometimes go for value stocks because they prefer to play the market this way. These are the stocks of companies that are not necessarily growing as rapidly as the growth companies, but they have value to them because they have been beaten down too violently compared to what they are truly worth.  
 
Those stock investments by style are the two biggest options for people attempting to get started in the market. Most people gravitate towards one style of investing or another. Money can be made investing in either style, but a lot of the choice boils down to how comfortable a person is with a particular type of investment. It is often about getting to know yourself as best as possible. You will not succeed if you don’t learn which methods really work for you and why they do. Learn that, and you are all set.