October 28, 2025
Welcome Back,
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Good morning! In today’s issue, we’ll dig into the all of the latest moves and highlight what they mean for you right now. Along the way, you’ll find insights you can put to work immediately
— Ryan Rincon, Founder at The Wealth Wagon Inc.
Today’s Post
Value Investing vs Growth Investing: What You Should Know
When investors talk about stock markets, you’ll often hear two big styles: value investing and growth investing. They sound fancy, but the difference is pretty simple — and knowing it can help you build smarter money habits. Let’s break them down, check how they differ, and see how you might use them.
What are they?
Value investing means finding companies whose stock price seems too low compared to what the business is really worth. In short: buying a great company at a “discount”.
Growth investing means buying companies expected to grow revenue and profits much faster than usual, even if the stock price already looks expensive. You’re paying for future success.
So value = bargain now. Growth = big potential later.
How they differ (at a glance)
Here’s a quick list of what sets them apart:
Feature | Value Investing | Growth Investing |
|---|---|---|
Price relative to earnings/book value | Usually lower (cheaper) | Usually higher (more expensive) |
Dividend payments | More likely to pay dividends | Less likely — reinvesting growth instead |
Risk level | Often seen as less risky (but not always safe) | Higher risk, since you're counting on future growth |
Time-horizon | Good for steady, slower gains | Better for long term, high growth possibilities |
Why it matters for you
Even if you’re not investing big amounts yet, knowing these styles helps you make better choices. Here’s why:
If you pick value stocks, you’re looking for safety and slower climb.
If you pick growth stocks, you’re aiming for bigger wins — but also bigger losses.
Having a mix (some value + some growth) can help spread risk. For example: if growth stocks stumble, value stocks might hold up better.
Your own comfort level matters: Are you okay with big swings in your portfolio (growth) or would you rather have steadier feel (value)?
What the recent data says
Historically, value stocks have often outperformed growth stocks over very long periods. For example, one study found value beat growth by about 4.4% per year in the U.S. since 1927.
But here’s the catch: in more recent years, growth stocks have actually outpaced value in many cases.
That means: what worked for decades doesn’t always work every decade. The market changes. So your strategy must adapt.
How you can use this in your investing
Let’s talk practical steps—what you can do to apply these ideas:
Decide your goal & risk style. Are you investing for 10-20 years (e.g., early retirement)? Or for shorter term? If long term, you may tolerate more growth risk.
Mix value and growth. You could split some money into “safer” value stocks or funds and some into “higher growth” ones.
Don’t chase hype blindly. Growth stocks sound exciting (tech, AI, etc) — but if you pay too much price today, risk is higher.
Check valuations. Even growth stocks can become overpriced. Value stocks may become undervalued for a reason (maybe they’re struggling).
Stay patient. These strategies often require time. Growth doesn’t always zoom right away. Value may take years to realize.
Real-life example
Imagine two companies:
Company A is well-known, profitable, pays dividends, and trades cheaply compared to its book value. That’s value stock style.
Company B is newer, reinvesting nearly all profits into expansion, has a high price-to-earnings ratio, and is expected to grow fast. That’s growth style.
If you invest in Company B, you might get big returns—but you also risk that growth doesn’t happen and price falls. Company A may grow slower but be more stable. If you held a mix of both, you might enjoy some growth while reducing the “big risk of nothing”.
Final thoughts
“The best time to plant a tree was 20 years ago. The second best time is now.”
The same goes for investing. Whether you lean value or growth, what matters most is starting, staying consistent, and matching the approach to your goals and comfort with risk.
Unless you’re a professional who can track companies deeply, a balanced approach often makes sense. Over the long run, that balance can help you build wealth steadily without excessive stress.
That’s All For Today
I hope you enjoyed today’s issue of The Wealth Wagon. If you have any questions regarding today’s issue or future issues feel free to reply to this email and we will get back to you as soon as possible. Come back tomorrow for another great post. I hope to see you. 🤙
— Ryan Rincon, CEO and Founder at The Wealth Wagon Inc.
Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.