Two investing styles. One core decision
Growth Stocks:
- Belong to companies expected to grow revenues and earnings at above-average rates
- Often tech or innovation-focused
- Reinvest profits (low dividends)
- Higher P/E ratios
Examples: Tesla, Amazon, Shopify
Tip: These stocks can be volatile, but have high upside potential—especially in bull markets.
Growth Stocks:
- Belong to companies expected to grow revenues and earnings at above-average rates
- Often tech or innovation-focused
- Reinvest profits (low dividends)
- Higher P/E ratios
Examples: Tesla, Amazon, Shopify
Tip: These stocks can be volatile, but have high upside potential—especially in bull markets.
Value Stocks:
- Trade at a discount relative to their fundamentals
- Steady cash flow
- Often of mature companies
- Higher dividends, lower P/E ratios
Examples: Johnson & Johnson, Coca-Cola, Intel
Tip: Ideal for income investors and stability seekers—may outperform during recessions.
