S2 E3 : TYPES OF INVESTORS (VALUE, GROWTH, DIVIDENT)
👥 Meet 3 Friends at a Restaurant:
You, Aditi, and Raj are at a restaurant.
You each order different meals:
🥗 You want healthy food (good for long-term health)
🍔 Aditi wants something exciting and spicy
🍩 Raj just wants free dessert!
That’s exactly how different investors think in the stock market:
🧓 1. VALUE INVESTORS
“I want good companies at cheap prices”
They’re like smart shoppers at a discount sale.
They look for:
- Undervalued companies
- Solid financials
- Strong leadership
💡 They believe:
"This company is worth more than its current share price. Let me grab it while it's cheap."
🧠 Real Example:
Tata Power — Some investors bought it when it was under ₹100.
They saw its future potential and waited patiently.
Now? It’s grown multiple times.
That’s value investing. Buy low, hold long.
🚀 2. GROWTH INVESTORS
“I want companies that grow fast!”
These investors chase:
-
New-age businesses
-
Tech startups
-
Fast expanding companies
They don’t care if the stock is expensive.
They care about how big it can become.
🧠 Real Example:
Zomato, Nykaa, or Adani Green — These are loved by growth investors.
They look exciting. They grow quickly.
But growth can also mean ups and downs.
💸 3. DIVIDEND INVESTORS
“I want regular income from my shares”
These investors love:
- Stable companies
- Regular dividend payouts
- Passive income
They don’t chase flashy growth.
They want peace of mind and steady returns.
🧠 Real Example:
HDFC Bank, ITC, or Coal India
They give dividends every year — like rent from a property.
Great for retirees or people who want money flowing in regularly.
📊 Summary Table:
💡 Value Investing
- Focus: Undervalued companies
- Example Companies: Tata Power, ONGC
🚀 Growth Investing
- Focus: Fast-growing companies
- Example Companies: Zomato, Adani Green
💸 Dividend Investing
- Focus: Regular cash payouts
- Example Companies: HDFC Bank, ITC
🤔 Which Type Should You Be?
You can be:
- Just one of them
- Or a mix of all three!
Many people start with dividend stocks,
explore value as they learn more,
and try growth with small amounts.
🎯 Pro Tip:
Great investors like Warren Buffett are value investors.
But even they enjoy growth and dividends from time to time.
🧠 Recap (Like Homework but Easy)
✅ Value Investors = Look for hidden gems
✅ Growth Investors = Chase future rockets
✅ Dividend Investors = Want regular income
✅ You can mix and match based on your goals
✅ Know your style — and invest accordingly