Value Investing

Value Investing is an investment strategy that involves selecting stocks or other securities that appear to be undervalued in the market. Investors who follow this approach seek to purchase assets that are trading for less than their intrinsic or book value, with the expectation that the market will eventually recognize their true worth, leading to price appreciation. The strategy emphasizes fundamental analysis of a company’s financial statements and overall market conditions to identify undervalued opportunities, often focusing on metrics such as earnings, dividends, and revenue growth. Value investing typically involves a long-term perspective, as it may take time for the market to adjust and reflect the underlying value of the investments. Notable proponents of value investing include Benjamin Graham and Warren Buffett. The strategy contrasts with growth investing, which focuses on stocks expected to grow at an above-average rate compared to their industry or the overall market.