The milestone to become a successful stock investor is to
identify and recognize the good investors and bad investors. People think that
good and big companies are good to invest, but it is not all time necessary to
invest in big companies. Even big companies sometimes make wonderfully bad investments.
Stock investors might be of two types in terms of investment
styles i.e. based on value and based on growth. Value investors used to
emphasize great companies at good price over good companies at great cost. In
this type of investment, investors emphasize on the key factors like price to
book ratio, price earnings ratio, divided yield and attractiveness of an
investment.
On the other hand, the growth investors invest in those
firms which emphasizes on the raising on their earnings and revenue rapidly
than general stock market. This type of investment pays little or no dividends
and prefers to use earning and profits to finance future growth and success in
future.
The major difference between these two types of investment
is that, value investors always favor to their own companies at very good price
while in case of growth investment, investors pick great companies as well as
price too which the secondary option.
Now, question arises that which type of investment to be
owned? Well it is totally depends on the investors.
If you having lower risk then you must go for
high investment in value investment style but if you having high risk then you
must go for high investment according to growth investment.Overall, the value can be exceeded in long passage of time,
but sometimes that growth can be achieved in short passage of time. So always
prefer the best
stock signals and
recommendations to become a successful stock investor.
