Published: 26th July 2024
By: Value Research
Value investing means buying an undervalued stock whose market price is less than the underlying business’ true worth or intrinsic value.
Buying a quality stock below its intrinsic value provides investors with a margin of safety or a cushion that reduces the risks of possible downsides.
Find your expertise, where your skills lie and invest only in areas you understand. For instance, if you can't evaluate banks, don't invest in banks.
Value investing tests your patience. It demands waiting for the right opportunities and holding investments until the market recognises their true value.
Thoroughly analyse companies to distinguish genuinely undervalued stocks from those that are merely cheap.
Successful value investors like Benjamin Graham or Warren Buffett follow some common principles that distinguish them from others. Read them in our story. Click on the link below.