@AzeriaInvest's post on eToro.com
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๐ฆ๐ฒ๐ฟ๐ถ๐ฎ๐น compounders โ ๐๐ฝ๐ถ๐๐ผ๐ฑ๐ฒ ๐ญ: Return on investment, why itโs all that matters and ๐ ๐ผ๐ป๐๐๐ฒ๐ฟ ๐๐ฒ๐๐ฒ๐ฟ๐ฎ๐ด๐ฒ ๐๐ผ๐ฟ๐ฝ
I built my investment beliefs on the back of theory rather than practice, like most of us. Many investors end up being categorized as either value or growth, just like right-wing and left-wing, Celtic or Rangers. However, just like libertarians and liberals exist, just like Partick Thistle and Hearts exist, there are other ways of looking at investing.
The general view is that a value investor will buy undervalued/cheap companies. There is a big distinction there: buying an undervalued company should be a good investment. Buying a cheap company probably not. Just like you could buy a PS5 at 70% of its price (undervalued), you could also buy a 30-year-old motorbike about to yield its last breath. It will be cheap but might not get you home.
Similarly, you could buy a company that is growing its sales 30% a yearโฆ. But like they say, revenue is vani