Value investing is associated with conservative" investing but in practice, that's not always how things pan out. Is it better to own a company trading at a low price to earnings ratio that is dying (would you want to own a bookshelf producing company today at any price?)? Or is it better to pay a high multiple for Facebook? Value investors generally believe that the company's shares will grow either because they will grow earnings and keep their low multiple - or they will be perceived as having better growth prospects and achieve higher multiples."
