value investing
Buying underpriced shares
Value investing is a strategy of buying stocks that appear underpriced relative to their intrinsic worth—typically companies with strong fundamentals trading below what their assets, earnings, or cash flow would suggest.
The approach requires patience, as the market may take years to recognize the value.
Warren Buffett made his fortune through value investing.
Contrasts with growth investing, which focuses on companies expected to expand rapidly regardless of current valuation.
- investorOne who allocates capital
- capital preservationSafeguarding original investment value
- margin of safetyAllowance beyond what's needed
- stocksOwnership stakes or inventory
- investment strategyApproach to growing wealth
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value investinggrowth investing
Buying stocks expecting rapid appreciation
speculation · speculative trading · technical analysis · day trading · high-frequency trading
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