A strategy focused on identifying undervalued stocks to achieve long-term gains.
Value investing involves purchasing stocks that appear undervalued based on fundamental analysis. Investors look for companies with strong fundamentals that are trading for less than their intrinsic value. The key principles include conducting thorough research, being patient, and having a long-term perspective. Value investors often utilize metrics such as the price-to-earnings ratio, price-to-book ratio, and dividend yield to find potential investments. This strategy contrasts with growth investing, which focuses on stocks expected to grow at an above-average rate.
Price is what you pay. Value is what you get. - Warren Buffett
