Value investing is thought of as trying to put a precise value on the low-priced securities of possibly mundane companies and buying if their price is lower. And growth investing is thought of as buying on the basis of blue-sky estimates regarding the potential of highly promising companies and paying high valuations as the price of their potential.
Rather than being defined as one side of this artificial dichotomy, value investing should instead consist of buying whatever represents a better value proposition, taking all factors into account. All else being equal, favor companies in which management has a significant personal investment over companies run by people that benefit only from their salaries
This explains why you should not invest in stocks or properties by solely looking at prices alone. It would help if you looked into value to make better decisions in investing.
The value of money relatively differs depending on where, when and how you measure it. It boils down to the following question to somewhat determine the value of money.
Where is your money?
Where do you earn and spend your money?
When do you earn and spend your money?
How do you earn and spend your money?
All your Questions Answered at Felix Consulting
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