Stick to your path
The growth vs. value debate is intensifying globally with each passing trading session. As a style, value investing has suffered a severe setback in past couple of years. The growth stocks have massively outperformed, transcending to a different stratosphere altogether. In the process the conventional valuation methods like price to earning ration (PER) and price to book ratio (P/BV) are suffering ignominious isolation. Many famous investors who stood firm to the principles of value investing appear to have changed their investment philosophy. Mr. Ramdeo Agrawal of Motilal Oswal Financial Services, considered one of the legendary value investors in India famously said in a recent interview, "Value is out of fashion right now, deeply out of fashion. Even Warren Buffett is having a tough time.“Earlier you used to buy cheap. If you end up buying cheap, you were guaranteed to make money. That's not the scene now.” ( see here ) Prashant Jain, CIO of HDFC AMC, ano...