Value and Growth Stocks

Corporate governance is the rules in which companies are controlled. This governance essentially balances the

From the in-depth analysis they conducted, the authors found that the value and momentum combination had such negative correlation with each other that the joint analysis model outperformed the individual value and momentum models in each market. Moreover, their research found that combining 50% of stock and 50% of non-stock assets using value and momentum strategies leads to even greater Sharpe ratios and, therefore, creates stronger portfolios.

Corporate governance is a set of actions used to handle the relationship between stakeholders by determining and controlling the strategic direction and performance of the organization. Corporate governance major concern is making sure that the strategic decisions are effective and that it paves the way towards strategic competitiveness. (Hitt, Ireland, Hoskisson, 2017, p. 310). In today’s corporation, the primary objective of corporate governance is to align top-level manager’s and stakeholders interest. That is why corporate governance is involved when there is a conflict of interest between with the owners, managers, and members of the board of directors (Hitt, Ireland, Hoskisson, 2017, p. 310-311).

Although stock implies ownership, few equity investors expect to play a role in running the companies whose shares they buy. Such firms are widely held, and few stockholders have large enough blocks of stock to influence management decisions. In small business, of course, owners usually run their companies.

Common stockholders are the basic owners of a corporation, but few stockholders of large corporations take an active role in management. Instead, they elect the corporation’s board of directors to represent their interests. Board members seldom get involved in the day-to-day management of the company. They establish the basic mission and goals of the corporation and appoint

Next, you need to take your fundamental personal inclinations and preferences into account. If you like bargains and hate to overpay, you are probably going to be happier following the value investing path. If you love looking for the next great success, then growth investing will be more appealing to you.

In large corporations the success or failure of the company is the responsibility of the board of directors. According to Richard DeGeorge, “The members of the board are responsible to the shareholders for the selection of honest, effective managers, and especially for the selection for the CEO and of the president of the corporation.” (p. 202). The board members have a moral responsibility to ensure the corporation is run honestly, in respect to its major policies, and to ensure the interests of the shareholders are satisfied. The next responsibility within a corporation is the responsibility management has to its board of directors. DeGeorge writes, “It must inform the board of its actions, the decisions it makes or the decisions to be made, the financial condition of the firm, its successes and failures, and the like.” (p. 202). The management of the corporation is morally obligated to

I would consider investing in Green Mountain Coffee Roasters. This is because based on the ratio analysis the firm is not insolvent since it can meet its debts obligations as they fall due. Also the trend in the financial statements indicate a general increase in the value of assets hence a favorable investment. Also the working capital has increased over the three years. The current assets have continued to be more than the current liabilities over the three years. Therefore the increase in working capital reflects that the firm has improved its ability to pay its current liabilities over the three years making it an ideal company to invest

It is the board's responsibility to consider and authorize a suitable remuneration package for the company's chief executive officer (CEO), make recommendations with respect to the attractiveness of dividends and dividends pay out, approve stock splits, form the audit committees, approve the company's financial statements, oversee management’s involvement in the shareholders and other stakeholders long-term interests and recommend or discourage major decisions such as acquisitions and mergers.

The stock that I have analyzed is Apple (AAPPL), which it falls under the technology sector and trades under the NASDAQ. This sector holds the biggest companies around the world. A lot of these companies are well known such as: Amazon, Google, LinkedIn, and etc. The technology sector is an undeniably investment opportunity for every investor around the world. Lets face it technology keeps improving and we have only seen the beginning of it. These companies, such as Apple, are associated with constant innovation and invention. Our modern economy relies upon the technology sector to improve quality, productivity, and profitability.

This essay will define and identify the differences between value stocks and growth stocks. It will also explain the rationale that investors use for purchasing both value and growth stocks, and will identify whether value or growth investing has worked best over the long term. In addition this essay will provide incite as to which of the two investment methods I prefer and a justification for this preference and lastly will identify a recent example of someone who can be described as a value or growth investor and describe their successfulness with the method they chose.

If you do not know about the industry, then you are gambling and not investing. How can you be sure the entire industry is not going to lose its value at some point soon? Many entire industries fall, remember VHS, DVD, Xerox? Remember the dot.com bubble? Even the highly valuable oil industry has a shelf life.

When it comes to investing you need to be patient. It takes a long time to determine if a stock is good and if you are able to find the right type of stock to help you grow a solid retirement. Finding strong winners and keeping the money invested in them is the best way to make sure that there is little risk and still the potential for gain. The best stocks will pay a dividend and have a stable commodity that the company produces.

Before I talk about what I will invest in, I think it would be crucial for me to talk about me personally as an investor. As an investor I am not afraid to loss today if I feel I will make more tomorrow. Meaning I am willing to go through the volatility of the market if I feel like I will come out ahead in the end. For my goals, the first one is an obvious one of making more money then I happened to start out with. Another goal is to find funds that will make the most amount of money over the entire 30 years not just funds that will do great over the next 3 years. This leads me into my personal preference of funds that perform better over the long haul instead of funds that have had a great couple of years. As for my preference, I tend to favor equity funds over bond funds because of their high potential for return and have the patience to deal with any volatility that comes with those equity funds. When I comes to risk I feel the best way to describe me is “risk adverse”, meaning I will only take on a certain amount of risk if there is an expectation of adequate compensation for that risk. In general though I would say I have an average risk tolerance when it comes to investing. I say this because while I will invest in more risky small value stocks I prefer more blue chip stocks because of their less volatility and more predictable nature. Meaning while I do take return into consideration it is not my only criteria and take risk into consideration as well when choosing my

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the