Today's Post - https://bahnsen.co/4n1XYOG
Understanding Value vs. Growth Investing: Insights from Dividend Cafe
In this week's Dividend Cafe, the focus is on value investing, contrasted against growth investing. David delves into current investor mentalities, reinforcing time-tested investing principles with a historical context to understand risk and reward. Citing a verse from Proverbs, the discussion highlights the importance of valuation and the common missteps in modern investing. The talk explores various outcomes based on initial valuations, using examples like Apple, Google, and Peloton. The emphasis is on the need to avoid overpaying for 'hot' stocks and the pitfalls of following the crowd. The episode concludes by advocating for a balanced approach that integrates both value and growth strategies, stressing that valuation is a critical factor in investment success.
00:00 Introduction to Value Investing
01:10 Biblical Insights on Investing
02:02 The Psychology of Buying Investments
03:42 The Risks of Overpriced Investments
06:07 Historical Examples and Lessons
10:51 Valuation and Operating Performance
13:22 The Essence of Economic Thinking
15:05 Supply, Demand, and FOMO
16:50 Value vs. Growth Investing
23:21 Potential Catalysts and Risks
26:13 Conclusion and Final Thoughts
Links mentioned in this episode:
DividendCafe.com
TheBahnsenGroup.com
