Sunday, April 5, 2009

Are 'Growth' and 'Value' contrasting approaches?

Growth can destroy value if it requires cash inputs in the early years of a project or enterprise that exceed the discounted value of the cash that those assets will generate in later years... those who glibly refer to "growth" and "value" styles as contrasting approaches to investment are displaying their ignorance. Growth is simply a component-usually a plus, sometimes a minus-in the value equation.

- Warren Buffett

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