Image source: Getty Images The headline of this article is a common one in financial journalism, pitching value shares against growth stocks. But is this the right mindset to have as an investor? And if so, which style should I favour next year? Here are my thoughts. The great divide In simple terms, growth stocks are companies expected to expand earnings rapidly. Investors are paying up for future growth potential. Value shares, on the other hand, are those trading below what they seem worth, and are often mature firms with steady cash flow, dividends, and much lower expectations baked in.…
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Image source: The Motley Fool A lot of investors are understandably nervous about stock market volatility. Some, however, take it in their stride – and can even profit handsomely from it. One who has done so over the course of decades is Warren Buffett. I think Buffett’s approach is revealing – and potentially helpful for other investors even on far more modest budgets. Sometimes, markets act in odd ways A critical thing to understand is that, for Warren Buffett, the stock market can largely be ignored. What I mean by that is that the day-to-day shift in share prices does…
From 2018 to 2025, Boris Lipkin was the Northern California Regional Director for the California High-Speed Rail Authority (CHSRA), leading development for 160 miles of the system between San Francisco and Merced Counties. That makes him uniquely qualified to understand why the system has gone so over budget. That’s why he authored the paper Learning from California: Lessons Drawn from California High-Speed Rail for Other Large Infrastructure Projects, published Thursday by the Mineta Transportation Institute at San Jose State. From the report:The CHSRA planned out a route for the system and made a series of key decisions (such as what…
Image source: Getty Images When it comes to top-performing UK penny shares in 2025, Agronomics (LSE: ANIC) looks hard to beat with its 79% gain so far this year. But Carclo (LSE: CAR) is beating it in style, with a cracking 197% rise year to date. Let’s take a closer look. Time for growth? Both these stocks have seen better times in the past. But as with penny shares in general, a low valuation usually tends to be the result of a previously popular stock going through a tough spell. And for each of these two, I see a good…
Image source: Getty Images Lately, I have been talking to a range of people about their outlook for the stock market – and I have had a wide variety of answers. The FTSE 100 may have hit new all-time highs repeatedly this year, but it still does not look nearly as expensive as its US counterpart. Meanwhile, those record highs could be signs that investors see value in the UK market – and that may continue. On the other hand, though, the economic outlook seems fairly weak. Parts of the US market look significantly overvalued to me. If there is…
Image source: Getty Images Within my retirement portfolio, I own a lot of stocks that pay dividends. And many of these have been great investments in recent years, propelling my savings higher. Interested to know what my three largest dividend stock holdings are currently? The companies could surprise you. 20% returns a year My largest dividend stock holding at present is Microsoft (NASDAQ: MSFT). Listed in the US, it’s one of the biggest technology companies in the world. This dividend stock is ignored by a lot of UK investors. That’s a shame because it’s an absolute champion. Sure, the yield‘s…
Image source: Getty Images Investing in the stock market can be a great way of generating a second income. And investors with time on their side might be surprised at what they can achieve. According to a widely held principle, the amount needed to target a £1,000 monthly income is around £300,000. But I think it’s worth looking at some of the assumptions behind that belief. The 4% rule According to a 1998 study, you can safely withdraw 4% of an investment each year without the value of the portfolio going down over time. That’s where the £300,000 figure comes…
Image source: Getty Images Using a Stocks and Shares ISA is one of the best ways to build wealth in the stock market entirely tax-free. And with thousands of UK and US stocks to choose from, investors are spoilt for choice when aiming to build diversified market-beating portfolios. But it’s no secret that building wealth in the stock market requires some upfront capital. So, just how much money does it take to reach millionaire status in an ISA? Let’s find out. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change…
Image source: Getty Images Earning passive income in the stock market’s pretty straightforward. All investors have to do is buy shares in a business that pays dividends, then just sit back, relax, and watch the money roll in. Of course, in practice, this strategy doesn’t always work out as expected. That’s because dividends aren’t guaranteed. And sometimes, even when a stock promises to pay a high yield, that income never materialises, luring investors into a trap. Fortunately, there are several sneaky tactics investors can use to avoid these pitfalls. So with that in mind, how much passive income could someone…
Image source: Getty Images Rolls-Royce (LSE:RR) shares reflect one of the greatest stock market recoveries in recent history. From some analysts suggesting it was nearing bankruptcy to now teetering on a £100bn-valuation, it has come a long way in three years. But where will it go next? That’s the question all investors should be asking. Because the company offers a very different proposition than it did a few years ago. So, I asked ChatGPT where it thought Rolls-Royce shares would be in one year. Its answer drew the opinions shared by other analysts. Perhaps not the deep dive I was…