Philosohy Of Equity Investing Flashcards
1
Q
Value Investing
A
Conservative approach to money management. Seek bargains within mature companies that are out of favour. Long time horizons needed
2
Q
Growth Investing
A
Concerned more about the future prospects of a firm than its present price.
3
Q
Sector Rotation
A
Attempt to profit through timing. Based on the belief that different industries will perform well during certain stages of the economic cycle
4
Q
Momentum Investing
A
Strong gains in earnings or stock price will translate into stronger gains in earnings of stock price. High risk, high return
5
Q
Growth at a Reasonable Price
A
Value approach to buying earnings growth. Seek companies with projections of growing earnings and high and increasing ROE relative to industry average
