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Former Financial Advisor [This is not personal financial advice]:

Stock prices go up and down, but usually your goal is to buy stocks low and sell them high.

Growth investing looks to trending sectors and companies and lets say 'bets' on a certain future playing out and thus being good for certain companies.

Value investing is an investment strategy where you deep dive on the financial fundamentals of a company and determine your own measure of worth, or what is sometimes called a fundamental value. In essence your own financial calculations give you a fundamental value that you think the stock is "actually" worth.

Having done this for a number of companies you then keep track of the market, and when, and only when, the stock price drops below your own fundamental value price then you buy.

Munger and Buffet would pair this approach to also planning to hold the stock for the long term and see themselves as owning part of the business over many years.

Often a stock might drop when the growth story turns against it (eg. AI is more exciting than crypto stories now), and this is likley when Value investors would get into a stock as it was now below their fundamental valuation and hence predicted on their models to go back up over time.

Mutual fund managers can often be classified as having a value or growth or index approach (and others). And for most normal investors it's usually good advise to take advantage of diversification and back a few different approaches in building a long term focussed portfolio.




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