【Value vs. Growth】Are These Labels Just Marketing? 🤨 by Jadewell Family Office
- Ann Yu
- 2 days ago
- 2 min read
Most investors have heard of the two major “schools” of equity investing: Value and Growth.
Warren Buffett is seen as the master of Value investing — buying high‑quality companies at attractive valuations.
Meanwhile, many “young stock gurus” gain fame through Growth stocks, riding explosive momentum during bull markets.
But here’s the twist: these labels are actually just marketing constructs.
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Over the long run, Growth stocks have massively outperformed Value stocks...Until this year
Looking at long-term performance:
🔴Russell 1000 Growth: 415% total return over the past decade (≈ 18% per year)
🟢Russell 1000 Value: 184% total return over the past decade (≈ 11% per year)
Yet this trend flipped in the first half of this year:
🔴Russell 1000 Growth: +5%
🟢Russell 1000 Value: +16%
Some readers may already be jumping to conclusions: “Got it — you’re going to say the AI bubble is peaking and Value is coming back.”
⛔Not quite. ⛔
If you only look at the headline, it’s easy to think Value beat Growth because AI is topping out.
😈But the devil is in the details.😈
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The “Value stocks” you think you’re buying… aren’t actually Value stocks anymore
Look at Value Index's holdings in Q1 this year:
Both were major beneficiaries of the AI wave and helped to push up the Value Index. In the first half of 2026
Micron: +305%
Caterpillar: +87%
But due to historical valuation and cycle characteristics, index providers still classified them as “Value.”
Only in May — after their explosive growth — were they reclassified into the Growth index.
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Growth stocks lagged this year partly because of index concentration
As for the Growth Index, just Nvidia + Apple + Google already make up 30%+ of the index because it's Market Cap weighted.
These mega‑caps underperformed relative to Micron and other “former Value stocks,” which is why Growth lagged Value this year.
😎It has nothing to do with an AI bubble.
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The real takeaway: No company is permanently or purely “Value” or “Growth”
Companies shift across categories as industry cycles, valuations, and growth rates evolve.
Just like people aren’t permanently optimistic or pessimistic — the proportions change over time.
When investing, don't jump to conclusions based on labels.
Understanding the underlying details keeps you from being led by marketing narratives.
Risk Disclosure & Disclaimer:
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