Growth or Value Investing?

Growth Value
Ratios
Growth Rate 5 – 10%
PEG < 1
ROE high
P/B low P≈ BV
P/E high low
D/E D≈ E
Dvd high Consistent payouts
Operating Performance
low R&D, depreciation and interest expense
NI/ Revenue ≈ 10 – 20%
Healthy cash level
Increasing retained earnings
Qualitative Factors – Durable Competitive advantage. If no CA, then choose firms with govt intervention that favours incumbents- geographical diversification- easy to understand biz models
E.g IT, Technology, Mining, Industrial, Consumer Discretionary, Energy Financials, Utilities
When to SELL
lost of competitive advantage
P/ EPS > 40