Unlocking Value: Essential Investing Metrics Every Smart Investor Needs to Know
Value investing, a strategy rooted in acquiring undervalued stocks, hinges on identifying discrepancies between market prices and intrinsic worth. Pioneered by Benjamin Graham and David Dodd, and later refined by Warren Buffett, this approach capitalizes on market inefficiencies where short-term sentiment obscures a company’s fundamental strength.
The methodology thrives on contrarian principles, demanding rigorous analysis to uncover hidden value. Investors seek margins of safety—purchasing assets at significant discounts to their calculated worth—to mitigate risk and maximize long-term returns.