Buy undervalued companies. Wait patiently. Let time unlock their true worth.
Value investors look for stocks trading below their intrinsic value—like buying a $1.00 item for $0.70. This investment strategy was made famous by Warren Buffet and Benjamin Graham.
Unlike market price, intrinsic value doesn't fluctuate wildly day to day; it grows steadily over time. Value investing is rooted in purchasing when a stock is undervalued relative to its intrinsic value.
How to Identify Value Stocks:
- Low P/E (< 15) or P/B ratios (< 1)
- Strong fundamentals
- Stable revenue and profit
- Temporary market discount
Tip: Buy when Price < Intrinsic Value (with Margin of Safety)
