Growth or Value Investing: Which is Better? Part II

In our last blog post, we discussed what's growth investing.  Now we will discuss the pros and cons of growth investing.

Pros of Growth Investing

• Investors can gain exposure to cutting edge industries that are rapidly evolving.
• It could be emotionally rewarding to watch the fast gain of stock prices.
  
• Successful investments may appreciate much faster than the overall market.

Cons of Growth Investing

• Higher risk and volatility.
  
• Dividends are rare as most growth companies reinvest their earnings.
  
• Time intensive to evaluate the credibility of various growth projection estimates.
  
• Valuations could be much higher than the market average to reflect projected growth that may never materialize.
  

In next blog post, we will take a look at what's value investing.