Investment philosophies/Styles

There has been an ongoing debate in the investment world about which investment style is the most dependable in the pursuit of superior long term returns. Value, growth, quality and momentum investing are arguably the major investing styles. However, the ongoing debate in the investment world is often framed in the context of value and growth investing. The respective motivations for value investing and growth investing are different. As such, we expect these investment styles to perform differently given different economic conditions. In this article, Liezel Maritz & Makhosonke Madi will explore the different economic conditions that are conducive for good returns for each investment style. We will also attempt to explain why these investment styles perform differently in different economic conditions and outline possible reasons behind observed trends.