A portfolio manager has revealed a preference for value stocks over growth stocks. In an interview with Yahoo Finance, the manager explained the reasons behind this choice.
Value stocks are typically companies that are seen as undervalued by the market, meaning their stock price is lower than their intrinsic value. These stocks often have solid fundamentals and may be overlooked by investors. The portfolio manager believes that investing in undervalued companies can lead to higher returns in the long run.
On the other hand, growth stocks are companies that are expected to grow at a faster rate than the overall market. While these stocks can offer high returns, they also come with higher risks. The portfolio manager prefers the stability and potential upside of value stocks.
By focusing on value stocks, the portfolio manager aims to build a diversified portfolio that can weather market volatility and deliver consistent returns over time. This approach may not always lead to quick gains, but the manager believes it is a more sustainable strategy for long-term investment success.