AI & the Story of “Value Investing” vs “Growth Investing”
Hi there, ✋
I’m Miguel, living in Barcelona, nice to meet you! If you read my last medium post “AI & the Story of Exploration”, where I forecasted that I would probably be publishing this type of AI Stories on a somehow frequent basis — tbh, I was thinking of monthly, or best case scenario weekly!
Surprise, surprise… it took less than a week! (publishing throughput record for me, for sure eheh) 🏆
There was no other way! After Ben Tossell’s shout out in his Ben’s Bites NL (here), where he goes over all the current major breakthroughs in the AI world, I just felt full of energy and motivation to try a new AI Story. 🤖🧠
If you are also curious about AI related topics & new trends, you are going to love Ben’s Bites NL — and you can easily subscribe to it (here). I’m having a blast reading it, and further exploring the article links to the craziest AI stories.
For example: only because of today’s Ben’s Bites NL (here), I got notice on how Corridor Crew put Tom Holland into The Spider-Verse. 🕷🌌️
Btw: Maybe you like to read weird stuff too. I have other small, quick to read, and curious posts on my profile that may interest you ➡️ Miguel Parente
Quick disclosure: I don’t think that would be fair to my fellow readers (“hi mom” & “hi dad” eheh), if in every post I point out that I’m no expert on AI topics, and that these exercises are just for fun & game’s purpose.
Furthermore, I will not bother you with all the details & logistics upon the AI Stories exercises — you can find the full extent of it in the first medium post (here).
So… Let’s play
TL;DR: I’m leveraging two different AI generative tools, both from OpenAI, one to generate the cool looking pictures (DALL·E — here), and the other one to immerse ourselves in a new story and/or theme (GPT-3 — here).
📏 Guidelines & Rules — on how to differentiate “me” from “AI”:
Paragraph style ➡ it’s written by yours truly
Normal text ➡ it’s the AI magic
Clash of the Titans: “Value Investing” vs “Growth Investing”
The differences between “value investing” and “growth investing” are the main subject of current discussions, and important frameworks to consider.
Value investing focuses on companies that are currently undervalued by the market, while growth investing focuses on companies with high rates of growth.
Value investors typically look for companies with strong fundamentals and a history of profitability, while growth investors may be more willing to invest in companies with a more speculative growth potential.
Value investors tend to be more conservative and patient, holding investments for the long term, while growth investors may be more aggressive and trade more frequently.
There are multiple factors that impact investing decisions and paradigms, however the upbringing and context of each one may represent a big role on how we perceive the economic and financial ecosystem around us.
It is important to have an open mind, and to understand that there are different ways to look at things.
We can find common principles in both notions of investing.
We may find that companies with strong fundamentals and a history of profitability may also have high rates of growth.
In the end, it is important to find a framework that works for us and helps us make investment decisions that are aligned with our goals and risk tolerance.
The false dichotomy of value and growth, in a more polarized landscape, are due to different emotional makeup and intellectual orientation of investors.
Those who favor value investing tend to be more skeptical and analytical, while those who favor growth investing tend to be more optimistic and speculative.
Both approaches have their merits, and there is no right or wrong answer. It is important to understand our own biases and tendencies, so that we can make investment decisions that are best suited for us.
Looking back we learn that:
- The most important thing is to have an open mind, and to understand that there are different ways to look at things.
- We need to find a framework that works for us and helps us make investment decisions that are aligned with our goals and risk tolerance.
Being methodical and having a consistent analytical framework, plus having the tenacity to embrace it in down markets,
has been the key to success for many investors.
…THE END 📖
Happily ever after?
So!!! What type of investor are you? And what are your techniques to survive the current economic landscape? 💸
Please, let me know down in the comments, if you agree with the POV of the AI, or if you find a better investment framework. (to the MOON!!! eheh)
Thanks! ❤
Carve-out (acquired.fm style): during top COVID in Jan’21, we lived through some historical moments, and without a doubt one of the most iconic ones was the #WallStreetBets & #MemeStocks saga. Well… the documentary on Netflix “Eat the Rich: The GameStop Saga” does a great job portraying this insane episode.
