But technology didn't die in those dismal times, although many tech stocks did. Another day brought many more new companies, even greater innovations and even better returns for investors. The lesson is that nothing stays the same. The book, published in 1983, was a classic of its day. Many companies besides Xerox that are listed in the Bridwell book as sure tech bets for the future have also seen hard times or landed belly up.
Growth still beats value Over time, though, the numbers show that growth beats value.
Growth companies are those with earnings growing faster than the market as a whole. The 1,000 companies in the Russell 1000 Index are divided each year into two groups, value and growth. The power of compounding over long periods washes away any divergences in initial price-earnings ratios and dividend yields. Within the growth-stock arena, it is possible to develop a typology. And then there are the technology companies that owe their success to science and research.