Buying Expensive Stock Is The Winning Strategy?

It is believed that only companies which have great growth potential or [have] established themselves as "leaders in their field" having left their competition in the dust dare price their stocks thusly because everyone is certain that the companies will be making profits forever.

Question: are they [expensive stocks] the better choice for investors? Or would well-researched, cheaper stocks that are carefully picked be just as good?

Is this a question as to whether to choose growth stocks or value stocks? Both have a place in my opinion.


There's a ton of research that shows that over the longer term valuation is a key determinant of performance, and as a result buying cheap makes sense. But obviously if you manage to get into a good growth story at ground level then you could do very well out of it. It's when you get into it ex-growth that the problems really start.