A month ago, Charles de Vaulx, a prominent financier fell to his death from his 10th floor New York office, an apparent suicide. Unlike brokers who had jumped in the 1930s Crash, de Vaulx, a resolute value investor, had shunned debt, keeping as much as 40% of funds in cash when he couldn’t find attractive investments.
Capitalism Won’t Thrive on Value Investing Alone
The economy needs careful decision-makers as well as risk-takers.
June 01, 2021
Yuji Sakai/Getty Images
Summary.
Investors fall into two camps: value investors, who base decisions on a careful analysis of revenues and costs, looking for steady performance, and growth investors, who place bets on risky projects with very high potential payoffs. A capitalist economy needs both kinds — those willing to back transformational ventures as well as those who reward prudence and thrift.
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Finance Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Finance Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Strengthen your fluency in financial statements.