Overview
Value investing is a strategy that focuses on identifying stocks that are undervalued compared to their intrinsic value. By analyzing financial statements and market conditions, investors can make informed decisions to buy these stocks at a lower price, aiming for long-term gains. The key concepts i...
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 the stock is priced 20% below its intrinsic value.
Example: Analysts predict a company's earnings will grow by 10% next year.
Example: Fear and greed often drive market trends.
Example: A company with strong fundamentals but a low stock price is a value stock.
Example: Tech companies often fall into the growth stock category.