Overview
Value investing is a strategy that emphasizes buying stocks that are undervalued compared to their intrinsic value. This approach requires a deep understanding of financial analysis and patience, as it often takes time for the market to recognize the true worth of these investments. By focusing on f...
Key Terms
Example: If a stock's intrinsic value is $50 but it's trading at $30, it may be undervalued.
Example: A margin of safety of 20% means you buy a stock at 80% of its intrinsic value.
Example: Analyzing a company's earnings, revenue, and market position.
Example: Investing in different sectors like technology, healthcare, and finance.
Example: If a stock is trading at $25, that is its market price.
Example: A company with strong earnings but a low stock price may be a value stock.