What is value investing?

Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value. Value investors actively ferret out stocks they think the stock market is underestimating. Value investors use financial analysis, don't follow the herd, and are long-term investors of quality companies.

What is a value investing strategy?

Some value investing strategies involve buying stocks that have fallen out of favor with investors, in the hope that their strong financial fundamentals will propel a rebound in their share prices. » Find the best undervalued stocks

Why do value investors use value investing?

Investors who use the value investing strategy hope the stock price will rise as more people come to appreciate the true intrinsic value of the company's fundamental business. The greater the difference between the intrinsic value and the current stock price, the greater the margin of safety for value investors looking for investment opportunities.