Bloomberg Surveillance · Thursday, October 1, 2026
Campbell Harvey explains his research, co-authored with Rob Arnott and others, which redefines value and growth investing. He argues that the common perception of growth stocks being 'anti-value' or inherently expensive is flawed. Instead, he advocates for focusing on actual sales growth and R&D growth, suggesting that many so-called 'value' indices contain expensive, low-growth stocks.
“Yeah, so people misunderstand value and growth investing. So often the growth stocks are anti-value. So if you're expensive, you're growth. And what we do is just focus on growth. Think about sales growth. Think about R & D growth. So why not look at growth when you're investing in growth?”
“Indeed, if you think of the major indices like the Russell 1000 value, Russell 1000 growth, you put those together equally, you get the market portfolio, the Russell 1000. So what's not in value is in growth. And it's not just Russell, but the other index providers also. So we made the case, if you're a value and growth investor, why would you invest in expensive low growth stocks? That makes no sense.”
“If you're buying the market, you're buying expensive low growth. So it's a different way.”