Episode Details

In this session, we wrap up our discussion of growth investing by looking at why some investors may choose to be growth investors, even though it has historically not delivered the types of return that value investing has. In particular, we note that investors who are good at timing macro or market-wide shifts in interest rates and earnings can also generate high returns from growth investing. We also present evidence that activity (collecting and processing information, doing research) has a much bigger payoff with growth stocks than with value stocks, perhaps because markets make bigger mistakes with growth stocks and investors are far more likely to give up on intrinsic valuation.
Playlist for class (Intro + 42 sessions): https://youtube.com/playlist?list=PLUkh9m2BorqnZGADa8cTzeJblmrZY_SqP&si=zI2pk17pJeld4nWR
Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilslides25/session21.pdf
Post-class test: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session21test.pdf
Post-class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session21soln.pdf

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