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