ADADBefore we proceed, let me explain the difference between Value and Growth. Warren Buffett’s Berkshire Hathaway is a classic Value stock; Jeff Bezos’ Amazon is a classic Growth stock. Growth is doing much better than Value these days, as we can see from two market indicators most nonprofessional investors have never heard of: the S&P Value Index and the S&P Growth Index. With one exception — the month of October — Growth has outperformed Value for every period in AJO’s statistics from three months to 45 years. “It’s made Value investors look like idiots.” Indeed.

Source: Washington Post November 13, 2020 12:56 UTC