Value Investing: Value Investing, popularized by Benjamin Graham and Warren Buffett, focuses on buying undervalued stocks trading below their intrinsic worth. Investors analyze financial statements, earnings, dividends, and assets to identify companies overlooked by the market due to temporary setbacks or negative sentiment. The strategy assumes the market will eventually recognize the true value, leading to price appreciation. It emphasizes margin of safety, where the purchase price is significantly below estimated value to minimize risk. Value investors seek strong fundamentals, low price-to-earnings or price-to-book ratios, and durable competitive advantages. Though it requires patience and deep research, this disciplined approach has delivered long-term success for many legendary investors.
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