Capitalism Won’t Thrive on Value Investing Alone
Amar Bhide explains that a capitalist economy needs both value investors and growth investors, via his article in Harvard Business Review.
Investors fall into two camps: value investors, who base decisions on a careful analysis of revenues and costs, looking for steady performance, and growth investors, who place bets on risky projects with very high potential payoffs. A capitalist economy needs both kinds — those willing to back transformational ventures as well as those who reward prudence and thrift.