Capital Ideas Podcast Growth vs. value: Is the tide turning?
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Oct 10, 2024 Don O'Neal, a Capital Group Portfolio Manager specializing in growth investing, and Justin Toner, focusing on value investing, dive into the growth versus value debate. They analyze the potential resurgence of value stocks and the need for selective stock picking in today's market. The conversation highlights opportunities in consumer staples and healthcare, while also addressing the role of AI and variable dividends. Both speak on navigating market valuations and the challenges of timing, providing valuable insights for investors seeking balance.
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Growth as a Part of Value
- Capital Group views growth as a component of value, not a separate investment style.
- Higher growth contributes to higher value, and they seek undervalued growth opportunities.
Caddyshack Analogy
- Don O'Neill uses a Caddyshack analogy to illustrate his point about growth vs. value investing.
- He likens growth stocks to a 'pool' and value stocks to a 'pond'.
Shifting Market Dynamics
- Justin Toner observes that when growth outperforms value, stocks tend to move up together.
- However, he sees early signs that this trend might be changing.