This week, we asked the Invstr Community what their favorite investing strategy is. The poll had a plurality, with 45 percent of Invstrs liking growth investing the most. Growth investing mainly focuses on capital appreciation. If you’re a growth investor, you want to see your money grow a lot, and you look for companies with above average growth levels regardless of their current value. This is riskier, but people seem to have a high-risk appetite these days, and big names like Cathie Wood use this style, which makes this a reasonable choice for first place. In second place is value investing, with 32 percent of Invstrs liking this style the most. Value investing involves buying stocks you feel are under-priced through an analysis of the company’s balance sheet. Legendary investors like Benjamin Graham and Warren Buffett use this method, but people question its viability in today’s market, which makes it a smart second place finish.
For the bronze medal, we have the momentum investing strategy, with 15 percent of Invstrs voting for this option. Momentum investing involves catching market trends and buying stocks that have been hot with the idea that it will continue to rise. However, choppy markets and timing are two roadblocks that can prevent this strategy, although the returns are enticing. In last place comes dividend investing, with 8 percent of Invstrs preferring this option. Dividend investing involves buying stocks that pay high dividends to receive a passive income stream from your portfolio. This method of investing is great for long term users, but it doesn’t present many returns and often requires a lot of money for it to be truly successful, which makes the last place finish not surprising.
Try incorporating your favorite investment strategy in Invstr’s Fantasy Finance or try some others! The Portfolio Builder can help you guide your investments too, so don’t be afraid to try anything!
The Invstr Team 🙂
