Putting a value on growthpotential

Professional Adviser
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Labels such as growth or value are actually two sides of the same coin and even managers who describe themselves as stockpickers are really looking for companies that are attractive on both measures

Labels can be dangerous ' their convenience stops us from thinking. For example, value and growth are not actually two distinct styles but two sides of the same coin. Stockpicker is another common label and we have all heard those who say proudly: 'I don't pay any attention to macroeconomics, I'm a stockpicker.' Such simple statements beg bigger questions: What do you pick? Why have you picked it? What have you paid for it? How will macroeconomic factors affect the profitability of the company and the valuation placed on its shares? One cannot pick stocks without being concerned how the...

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