Quarterly earnings surprise data shows value sectors delivering a 5% beat rate, compared to 3% among growth sectors. Analysts cite better cost control and lower dependence on aggressive revenue forecasts as drivers. Such metrics strengthen the case for overweighting value in value vs growth investing debates. Berkshire Hathaway stock has wildly outperformed the market over these past few decades, delivering a total gain of 5,502,284% in per-share market value vs. 39,054% for the S&P 500 . Today, Berkshire Hathaway has joined the ranks of the $1 trillion market cap club, and investors everywhere follow Buffett's trades and guidance to become more successful investors. One of the most common claims we hear is that the higher valuations of growth and quality stocks are justified by their underlying fundamentals. The argument goes that these expensive stocks are not really that expensive, given their superior quality or high levels of growth. Consensus forward EPS growth for value sectors is now tracking at 8%, while growth sectors hover at 12%, yet risk-adjusted returns favor value due to lower volatility and stronger dividend backing. This risk-return trade-off is a central element in value vs growth investing strategy assessments in current markets.
