Growth vs. Value — A False Dichotomy

Financial media presents growth investing and value investing as competing philosophies. Buffett settled this debate decades ago: "Growth and value investing are joined at the hip." Every investment is a value investment if the price is right.

Why This Matters

The growth/value binary is a product of style-box categorisation in the fund management industry — a marketing artefact rather than a genuine intellectual distinction. Growth investors seek businesses with above-average earnings growth and are willing to pay higher multiples. Value investors seek businesses priced below intrinsic value and prioritise margin of safety. But both are trying to buy a stream of future cash flows at a price less than those cash flows are worth. The only question is what inputs you use for the intrinsic value calculation.