Turim’s Insights

02 September 2020

August was marked by the historic highs of the S&P 500 and Nasdaq, once again highlighting technology actions. But another relation that marked historical highs was the difference between growth and value stocks. This was explained by Pedro Hokama, head of Variable Income Analysis at Turim MFO, in the webinar “Turim’s Insights”.

Over the past 10 years, value companies have increased 128%, while growth companies have accumulated an increase of 349% – 2.7 times the increase in value.

“A growth company presents faster growth than the market, with little fixed investment thanks to the internet, as it does not need many physical stores to access its entire consumer market. This means that it has a high return on invested capital and high organic growth, which can be exponential”, says Pedro.

Despite the difference between them, the founding partner and co-CEO Gustavo Marini reminds us that, when it comes to wealth management, diversification is always necessary.

Our partner and CIO Leonardo Martins Moraes agrees: “Wealth management implies diversification: not only in terms of strategies, but geography, asset classes, managers, etc. Diversification is Turim’s backbone”, he concludes.