In fact, the value approach and growth approach are substantially different, although at times it may be two different approaches and may end up at the same stock. That is entirely possible and legitimate too. The growth based approach to investing is slightly in contrast to the value based approach. The growth approach does not obsess itself too much with low P/E ratios and high P/E ratios. Under the growth based approach, P/E ratios are largely irrelevant if the company is able to sustain growth in sales, growth in profits as well as high levels of ROE. The private banks are classic examples of growth stocks where valuations may be quite rich but the high growth and ROE are used as justifications for these valuations. Normally, growth stocks have momentum in their favour and institutional investors also are known to prefer this growth-based approach to stocks. Returns can be quicker in case of growth stocks but such stocks are also quite vulnerable to sector and macro level shocks. Growth strategy works very well when a company is disruptive. For example, it would have been hard to adopt a value approach to Havells or Eicher 20 years back. You had to bet on revival in growth and that is exactly what growth investing is all about.