CONSUELO MACK: This week on WealthTrack, ClearBridge Aggressive Growth Fund Manager Richard Freeman has been on the fast track for 30 years with no signs of slowing down. Where is this Great Investor driving the portfolio now? That’s next on Consuelo Mack WealthTrack.
Hello and welcome to this edition of WealthTrack, I’m Consuelo Mack. Where do you come out in the classic, Wall Street “growth versus value” debate? When you look at your portfolio are there more value or growth stocks and funds? What’s the difference between the two categories? Traditionally growth stocks are defined as having higher than average earnings and sales as well as price/earnings multiples. Typically they pay little or no dividend. Value stocks are supposed to have slower growth and lower P/E multiples but pay higher dividends. Growth stocks typically perform better in bull markets. As you can see from this chart, they certainly have since the market bottomed in March of 2009. A benchmark Russell Growth Index has vastly outperformed the Value Index.