New companies vs old companies: a more interesting concept than “value” vs “growth”

Many investors divide companies into “value” stocks and “growth” stocks. But a more useful distinction might be between old companies and new companies. Max King explains why.

Rivian electric cars at the Nasdaq stock exchange
Electric-car maker Rivian surged on its Nasdaq debut to a valuation of over $100bn
(Image credit: © Michael M. Santiago/Getty Images)

In mid-November, the Financial Times reported that Rivian, an electric-vehicle maker which has yet to record any meaningful revenue, had surged on its Nasdaq debut to a valuation of over $100bn, more than the valuation of Ford and General Motors.

On the same day, the FT also reported a 15% jump in the share price of ITV and 20% for Marks & Spencer.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.