Value Investing

Value investing is an investment strategy focused on selecting stocks that are undervalued compared to their intrinsic value. Value investors seek out companies whose stock prices are lower than their fundamental worth, often due to temporary issues or market inefficiencies. The goal is to buy these stocks at a discount and hold them until the market recognizes their true value, resulting in price appreciation. This strategy is associated with long-term, fundamental analysis.

Example

A value investor might purchase shares of a company that has experienced a temporary setback, but whose underlying business remains strong, believing the stock price will eventually rise to reflect its intrinsic value.