Growth and Value: Part of the Same Equation? Be Persistently Different Than the Index

Investing in Places That Pay Off

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We generally want to invest at a price where if our growth thesis is totally wrong, we can still expect to earn at least an 8% nominal cash-on-cash return. That’s roughly in line with what the overall market is likely to return, so we should match that even if none of the free options pay off. On average over the past 19 years we've paid less than the market multiple for the stocks we’ve bought, but the subsequent earnings-per-share growth on those stocks has been nearly double that of the S&P 500. We're trying to own things that look like value stocks when we buy them, but which turn out to be growth stocks.
Source: http://www.valueinvestorinsight.com/