Value Investing

What is value investing?

Value investing is an investment strategy that focuses on buying undervalued assets with the aim of generating long-term capital gains. It is based on the idea that the market price of an asset may not always accurately reflect the asset's intrinsic value, and that there may be opportunities to buy assets at a discount and sell them for a profit when their market value increases to reflect their intrinsic value.

Why to do value investing?

Value investing is an approach to investing that focuses on purchasing stocks of companies that are undervalued by the market. By doing so, investors can benefit from significant growth potential as the stock price rises up to the market-assessed value and further on.

Furthermore, this investing strategy enables very low-cost entry points for investors due to a bargain acquisition process and it helps them avoid costly mistakes in the evaluation of risky investments. If done properly, investors have an opportunity to consistently maximize their profits over time as well as protect their hard-earned funds from unfavorable market conditions.

How to do value investing?

Value investors typically use fundamental analysis to identify undervalued assets. This involves analyzing the financial and operational performance of a company, as well as its industry and macroeconomic conditions, to determine the company's intrinsic value. Value investors then compare the intrinsic value of a company to its market value to determine whether the company is undervalued or overvalued.