Among well-worn investment tropes, the perennial favourite “growth vs value” is the stock market version of Godzilla vs Kong, the current US box office hit. Invest in companies that offer strong growth prospects, or those that appear undervalued by some metric?
It’s an epic showdown between two iconic rivals. Each will land powerful blows and score their share of points, pleasing their respective fans. There’s lots of shock and awe, but not much clarity. The ultimate victor? Subject to debate. Frankly, the overall narrative is not that convincing.
Whether it is a Hollywood reboot or Wall Street’s conventional wisdom, we have seen it all before. I will admit there is a certain superficial comfort in sticking with what we know, or what we think we know. But let us acknowledge this much: the value versus growth debate is over — not because one style has at long last vanquished the other, but because the “competition” between the two is based on a forced dichotomy driven more by perception than reality.