FYI: Although traditional investing philosophies have long relied on the distinction between “growth vs. value,” we believe both categories are becoming irrelevant. As the economy becomes more digitized and businesses are disrupted at an increasing rate, a low multiple on current earnings (i.e., a classical view of “value”) is not a bargain if the business is structurally disadvantaged going forward.
Rather than looking at the world through this traditional lens, we think a more constructive framework is “digital vs. decline." In our view, digital businesses have substantial structural advantages, making them far more likely to prosper and generate long-term cash flows than incumbents who fail to adapt. Moreover, we feel that sector classification is now materially less important than the strength of a company’s business model.
Regards,
Ted
https://www.fa-mag.com/news/forget-growth-vs--value--think-digital-vs--decline-43860.html?print
