It took a while even for Warren Buffett to decide whether he was a value or growth investor.
In his early days as an investor, Buffett’s hero was Benjamin Graham, a value investor. Buffett generated astonishing returns using the Graham-style approach. As he progressed through his career, though, Buffett moved more toward a Philip Fisher style of investing. Buffett bought growth stocks and held on for the long term. Famously, Buffett described his investment approach as being 15% Phil Fisher and 85% Ben Graham. But the reality is that he is neither a value nor a growth investor… He is both.
It seems, we are in a very similar position to 1999. The growth stocks’ amazing run is nearing its end. Meanwhile, the opportunity in value stocks is increasing. May be we should shift more to value than growth in our stock portfolio to get prepared.
Sven Franssen