Label Obsession

I came across an article that calls for a decline in value stocks because they have outperformed growth stocks in recent years. The main thing I got from the article is that people are obsessed with labels.

After reading the article you should see that Big Moat investing is great because you are looking for good value in a stock but that does not mean you are looking for ‘value stocks’. Big Moat methodologies work just as well with so-called value stocks, growth stocks, or any other kind of stock as long as they meet the Big Moat criteria.

The article also has a great “thanks for pointing out the obvious” sentence too: (emphasis mine)

It appears that yesterday’s growth stocks may be today’s value stocks, and vice versa. But no matter which category you aim to invest in, you’re dealing with a moving target.