Discount is not Always the Answer Diversification and Risk

Distinguishing Between Growth and Value Stocks

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People often put stocks or their stock buying theory into the "growth" or "Value" category. This phenomenon is relatively new - pioneered primarily by investment research firm Morningstar. Most people don't care what it's called, as long as it makes them money. The basic premise is this - for value investors they concentrate on stocks whose value, in their opinion, have a discount to the intrinsic value to the company. The growth school premise is this - a company's sales and earnings potential are the best indicators of future performance.
Source: http://www.investorguide.com/igu-article-830-stock-strategies-value-and-growth.html