Value investing is about being able to see the intrinsic value of something, then buying that thing when its priced lower than the intrinsic value. Value investors believe the stock market to overreact to good or bad news and set prices that aren’t reflective of the true value of a stock, which gives rise to an opportunity to profit.
Put simply, if you know the true value of jewelry, and you find some overlooked cheap jewelry in a garage sale, then you would obviously exploit the opportunity.
Growth investing, on the other hand, is about investing in the stock of smaller companies whose earnings are expected to climb at a much higher rate than established companies.