What Is Value Investing?

An investment strategy that emphasizes the intrinsic value of a company. Value investors analyze a company's fundamentals to estimate its true worth, aiming to purchase stocks at a price lower than this calculated value. The central premise is that the market often misprices stocks, allowing informed investors to capitalize on discrepancies between a stock's market price and its intrinsic value. This approach, championed by Benjamin Graham and later popularized by his protégé, Warren Buffett, demands rigorous analysis and a long-term perspective.