When you invest for growth, you are usually seeking capital appreciation over the long term. A value investor looks for bargains, and chooses investments that have low prices in relation to such factors as earnings, sales, net current assets, and the book value of the issuing companies. Read more at http://news.davidlerner.com/news.php?include=145577

1. DAVID LERNER ASSOCIATES
The difference between Growth
Investing and Value Investing

2. What’s the distinction amongst growth investing and value investing?
Answer:
When you invest for growth, you are usually seeking capital appreciation over the
long term. You will most likely choose investments that you feel will exhibit a fast-
er-than-average increase in share price over the coming years. Growth stocks have
the potential to outperform slower-growing investments, like income stocks, be-
cause gains are typically reinvested in the company to accomplish further growth
instead of distributed to shareholders as a dividend. Growth stocks may be vola-
tile. One way to minimize the impact of that volatility on your portfolio is to buy
shares of a growth mutual fund. You’ll enjoy immediate diversification (though
diversification alone cannot ensure a profit or ensure against a loss). And an ac-
tively-managed mutual fund also offers professional management expertise.
A value investor looks for bargains, and chooses investments that have low prices
in relation to such factors as earnings, sales, net current assets, and the book
value of the issuing companies. A value investor may turn down a popular blue
chip stock because the price per share is too high, although the issuing compa-
ny is stable and has a record of steady growth. Instead, the value investor seeks
to buy stock of a solid company that is briefly out of favor or bargain priced for
some other reason. In doing so, the value investor predicts that the share price
will eventually return to a higher level when the stock comes back into favor, and
the market drives the stock price back up. A mutual fund manager may focus on
growth investing, value investing, or some combination.
Note: Before investing in a mutual fund, carefully consider its investment objec-
tives, risks, fees, and expenses, which are included in the prospectus available
from the fund. Read it carefully before investing.

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offered by David Lerner Associates, Inc. This material does not constitute an offer
or recommendation to buy or sell securities and should not be considered in con-
nection with the purchase or sale of securities.
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ties that may be imposed by law. Each taxpayer should seek independent advice
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