Google Inc (GOOG), Netflix, Inc. (NFLX): What Mega-Manager Would Like These Stocks?

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Today, Netflix, Inc. (NASDAQ:NFLX) embodies a typical growth investment. Though the stock was rocked in 2011 in the wake of its Qwikster episode that left customers confused, it’s back to growth again now for Netflix, Inc. (NASDAQ:NFLX) shareholders. Year to date, the stock is up a whopping 148%.

However, investors who try to value Netflix, Inc. (NASDAQ:NFLX) by traditional metrics will be shocked at the seemingly ludicrous valuations they will discover. Valuation metrics simply don’t work for companies like these. Instead, it’s best to add context by analyzing these companies’ market opportunities. Fool contributor Tim Beyers breaks down the approach, using Netflix, Inc. (NASDAQ:NFLX) as an example, in this video.

What’s your style?
There are obviously more approaches to investing than these two. However, these investing gurus offer solid investment advice for long-term investors.

Some investors need ratios to soothe their conscience. Others need massive market opportunities. Still others can manage to be very flexible with their investment style, able to jump from one approach to another.

Whatever your approach may be, it’s important that you understand yourself and your style. Can you identify with either of these approaches? What’s your style?

The article Investment Advice From 2 of the World’s Greatest Investors originally appeared on Fool.com and is written by Daniel Sparks.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Google and Netflix. The Motley Fool owns shares of Google and Netflix.

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