63:
165:
260:
22:
682:
445:(prices inhering all news, and hence potential) should favor active stock selection: for example, smaller companies are not followed as closely as larger blue-chip firms, and may then trade at a discount to true value. The
485:
effect: returns on growth stocks and value stocks are not highly correlated, thus by diversifying between growth and value, investors may reduce risk and still enjoy long-term return potential.
497:
as the basis for investing. Studies of stock returns going back to 1925 have suggested that "smaller is better," and on average, the highest returns have come from stocks with the lowest
509:, which translates into higher risk. (Also, there have been long periods when large-cap stocks have outperformed.) Some investors then choose the middle ground and invest in
654:
175:
607:
719:
233:
127:
205:
99:
543:
212:
106:
465:
look for bargains — cheap stocks that are often out of favor, such as cyclical stocks that are at the low end of their
321:
303:
146:
80:
49:
35:
461:
and value seekers. Proponents of growth seek companies they expect (on average) to increase earnings by 15% to 25%.
285:
219:
113:
470:
748:
578:
270:
190:
84:
201:
95:
533:
425:
believe in their ability to outperform the overall market by picking stocks they believe may perform well.
638:
712:
482:
400:
339:
558:
573:
281:
73:
335:
738:
449:
combines a passive style in an efficient market and an active style in less efficient markets.
226:
120:
753:
705:
498:
494:
348:
41:
506:
388:
368:
693:
623:
277:
186:
8:
743:
446:
563:
438:
426:
396:
392:
568:
478:
442:
422:
433:
may produce potentially higher long-term results (pointing out that the majority of
642:
548:
538:
458:
553:
523:
372:
689:
466:
462:
384:
732:
430:
376:
583:
502:
408:
364:
655:"Are small cap companies more risky investments than large cap companies?"
182:
528:
434:
404:
474:
288:. Statements consisting only of original research should be removed.
164:
62:
360:
510:
352:
681:
380:
611:
544:
Financial risk management § Investment management
429:, on the other hand, feel that simply investing in a
87:. Unsourced material may be challenged and removed.
513:seeking a tradeoff between volatility and return.
505:". At the same time, small-cap stocks have higher
391:— and within each further weighs factors such as
730:
713:
469:. A value investor is primarily attracted by
191:introducing citations to additional sources
634:
632:
50:Learn how and when to remove these messages
720:
706:
367:. Here, for example, one manager favors
322:Learn how and when to remove this message
304:Learn how and when to remove this message
147:Learn how and when to remove this message
629:
457:: Active investors can be divided into
181:Relevant discussion may be found on the
473:with low prices compared to underlying
731:
375:. The classification extends across
603:
601:
599:
441:). Active investors feel that a less
355:), referring to how a characteristic
340:Investment strategy § Strategies
336:Style investing § Classification
676:
414:Major styles include the following:
253:
158:
85:adding citations to reliable sources
56:
15:
13:
688:This finance-related article is a
596:
14:
765:
31:This article has multiple issues.
680:
258:
174:relies largely or entirely on a
163:
61:
20:
481:. These two styles may offer a
72:needs additional citations for
39:or discuss these issues on the
647:
617:
579:Conservative Formula Investing
371:, while another prefers large
1:
608:Mutual Fund Investment Styles
589:
692:. You can help Knowledge by
534:Returns-based style analysis
7:
614:Learning Library (Archived)
517:
284:the claims made and adding
10:
770:
675:
493:: Some investors use the
333:
559:Low-volatility investing
401:diversification benefits
351:(and more generally, in
639:Investment Philosophies
574:Magic Formula investing
491:Small Cap vs. Large Cap
447:core-/satellite concept
749:Investment management
626:, nasdaq.com/glossary
624:Investment philosophy
499:market capitalization
471:asset-oriented stocks
389:financial derivatives
357:investment philosophy
349:investment management
334:Further information:
187:improve this article
81:improve this article
564:Momentum investing
479:liquidation values
477:, replacement, or
419:Active vs. Passive
359:is employed by an
269:possibly contains
202:"Investment style"
96:"Investment style"
701:
700:
569:Quality investing
501:, the so-called "
495:size of a company
431:market index fund
427:Passive investors
332:
331:
324:
314:
313:
306:
271:original research
252:
251:
237:
157:
156:
149:
131:
54:
761:
722:
715:
708:
684:
677:
670:
669:
667:
665:
651:
645:
643:Aswath Damodaran
636:
627:
621:
615:
605:
549:Growth investing
539:Asset allocation
507:price volatility
455:Growth vs. Value
443:efficient market
423:Active investors
409:growth prospects
373:blue-chip stocks
369:small cap stocks
345:Investment style
327:
320:
309:
302:
298:
295:
289:
286:inline citations
262:
261:
254:
247:
244:
238:
236:
195:
167:
159:
152:
145:
141:
138:
132:
130:
89:
65:
57:
46:
24:
23:
16:
769:
768:
764:
763:
762:
760:
759:
758:
729:
728:
727:
726:
674:
673:
663:
661:
653:
652:
648:
637:
630:
622:
618:
606:
597:
592:
554:Value investing
524:Style investing
520:
483:diversification
463:Value investors
347:, is a term in
342:
328:
317:
316:
315:
310:
299:
293:
290:
275:
263:
259:
248:
242:
239:
196:
194:
180:
168:
153:
142:
136:
133:
90:
88:
78:
66:
25:
21:
12:
11:
5:
767:
757:
756:
751:
746:
741:
725:
724:
717:
710:
702:
699:
698:
685:
672:
671:
646:
628:
616:
594:
593:
591:
588:
587:
586:
581:
576:
571:
566:
561:
556:
551:
546:
541:
536:
531:
526:
519:
516:
515:
514:
511:mid-cap stocks
487:
486:
467:business cycle
451:
450:
439:market indexes
405:relative value
330:
329:
312:
311:
266:
264:
257:
250:
249:
185:. Please help
171:
169:
162:
155:
154:
69:
67:
60:
55:
29:
28:
26:
19:
9:
6:
4:
3:
2:
766:
755:
752:
750:
747:
745:
742:
740:
739:Finance stubs
737:
736:
734:
723:
718:
716:
711:
709:
704:
703:
697:
695:
691:
686:
683:
679:
678:
660:
656:
650:
644:
640:
635:
633:
625:
620:
613:
609:
604:
602:
600:
595:
585:
582:
580:
577:
575:
572:
570:
567:
565:
562:
560:
557:
555:
552:
550:
547:
545:
542:
540:
537:
535:
532:
530:
527:
525:
522:
521:
512:
508:
504:
500:
496:
492:
489:
488:
484:
480:
476:
472:
468:
464:
460:
456:
453:
452:
448:
444:
440:
437:underperform
436:
432:
428:
424:
420:
417:
416:
415:
412:
410:
406:
402:
398:
394:
390:
386:
382:
378:
377:asset classes
374:
370:
366:
362:
358:
354:
350:
346:
341:
337:
326:
323:
308:
305:
297:
287:
283:
279:
273:
272:
267:This article
265:
256:
255:
246:
235:
232:
228:
225:
221:
218:
214:
211:
207:
204: –
203:
199:
198:Find sources:
192:
188:
184:
178:
177:
176:single source
172:This article
170:
166:
161:
160:
151:
148:
140:
129:
126:
122:
119:
115:
112:
108:
105:
101:
98: –
97:
93:
92:Find sources:
86:
82:
76:
75:
70:This article
68:
64:
59:
58:
53:
51:
44:
43:
38:
37:
32:
27:
18:
17:
754:Stock market
694:expanding it
687:
662:. Retrieved
659:Investopedia
658:
649:
619:
584:Buy and hold
503:Size premium
490:
454:
435:mutual funds
418:
413:
365:fund manager
356:
344:
343:
318:
300:
291:
268:
240:
230:
223:
216:
209:
197:
173:
143:
134:
124:
117:
110:
103:
91:
79:Please help
74:verification
71:
47:
40:
34:
33:Please help
30:
529:Style drift
744:Investment
733:Categories
664:29 January
590:References
278:improve it
213:newspapers
107:newspapers
36:improve it
294:July 2022
282:verifying
243:July 2022
183:talk page
137:July 2022
42:talk page
518:See also
397:momentum
393:leverage
381:equities
361:investor
353:finance
276:Please
227:scholar
121:scholar
459:growth
338:, and
229:
222:
215:
208:
200:
123:
116:
109:
102:
94:
385:bonds
234:JSTOR
220:books
128:JSTOR
114:books
690:stub
666:2019
475:book
206:news
100:news
612:AXA
407:or
387:or
363:or
280:by
189:by
83:by
735::
657:.
641:,
631:^
610:,
598:^
421::
411:.
403:,
399:,
395:,
383:,
379:—
45:.
721:e
714:t
707:v
696:.
668:.
325:)
319:(
307:)
301:(
296:)
292:(
274:.
245:)
241:(
231:·
224:·
217:·
210:·
193:.
179:.
150:)
144:(
139:)
135:(
125:·
118:·
111:·
104:·
77:.
52:)
48:(
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.