Growth Versus Value

Published: Jan. 24, 2023, 2:31 p.m.

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You know me as the host of the Real Estate Espresso Podcast. By day, I\\u2019m also one of the partners at Y Street Capital where we specialize in new construction and development projects across the US and Canada. We are observing that Investors these days are cautious. We agree that it make sense to be cautious. You want to ask tough questions whenever you are performing due diligence.

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You really want to understand what it means to invest in a particular project from a market standpoint.

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On today\\u2019s show we are talking about what strategies work in each economy.

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When the market is hot and the tide is rising, it\\u2019s natural to focus on growth. Growth is going to give the best results. That\\u2019s true in real estate investing, and it\\u2019s even true in the stock market.

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But when the market is contracting and the economy is hunkering down, the best results will come from focusing on value.

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Value outperforms growth over the span of economic cycles. Why is that?

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If you focus on value, then you will also benefit from the growth when it happens. You will get the double kicker of both value and growth. But if you\\u2019re focusing growth alone, then you\\u2019re going to get stuck when the market is contracting.

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So what do we mean when we\\u2019re talking about growth and value?

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Host: Victor Menasce

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email: podcast@victorjm.com

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