{"id":276,"date":"2010-06-05T20:24:23","date_gmt":"2010-06-06T00:24:23","guid":{"rendered":"http:\/\/blog.payne.org\/?p=276"},"modified":"2022-03-25T20:11:09","modified_gmt":"2022-03-25T20:11:09","slug":"startu-investing-growth-vs-value","status":"publish","type":"post","link":"https:\/\/payne.org\/blog\/startu-investing-growth-vs-value\/","title":{"rendered":"Stock Market- Startup Investing: “Growth” vs “Value”"},"content":{"rendered":"

Individual stock investing can be divided into “growth” & “value” strategies.  Growth investors as well as every stock picking service<\/a> find companies that will grow at an above-average rate.  Value investors try to find deals:  companies that are trading below their intrinsic value.<\/p>\n

I’ve found venture investors can be categorized among similar lines.<\/p>\n

“Growth” investors focus on the idea:  the team, market, and product.  They want investments that can be run-away successes.  In contrast, value investors focus on the “deal”:  investor rights & protections, aggressive preferred stock elements, etc.  They want the biggest slice of the outcome, for the smallest investment amount.<\/p>\n

In practice, it’s not really this black and white.  As Warren Buffet has pointed out, growth and value strategies are not mutually exclusive, and successful investors use a combination of both.<\/p>\n

As an entrepreneur, I love working with growth-focused investors.   The value or “deal”-focused VCs are a drag.  I respect investors wanting fair terms, but getting overly clever or aggressive just complicates things for follow-on capital, disincents management, and most importantly, time spent negotiating those terms is time NOT spent on making the company valuable. Check this Investors Underground Review<\/a> to learn more about stock market investment options.<\/p>\n

My message to VCs:  you’ll make your LPs happy by finding the right projects and doing everything to make them successful, not by cranking your average ownership & deal terms across your portfolio.  Keep your eye on the right ball.<\/p>\n","protected":false},"excerpt":{"rendered":"

Individual stock investing can be divided into “growth” & “value” strategies.  Growth investors as well as every stock picking service find companies that will grow at an above-average rate.  Value investors try to find deals:  companies that are trading below … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,7],"tags":[],"class_list":["post-276","post","type-post","status-publish","format-standard","hentry","category-entrepreneurship","category-ramblings"],"_links":{"self":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts\/276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/comments?post=276"}],"version-history":[{"count":4,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts\/276\/revisions"}],"predecessor-version":[{"id":843,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts\/276\/revisions\/843"}],"wp:attachment":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/media?parent=276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/categories?post=276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/tags?post=276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}