Forum

Financial Trading

What is value investing?

Answered by Sophia Miller | 1 year ago 3 Answers

The premise of value investing is that the market isn’t always efficient in pricing a company’s intrinsic value. A value investor seeks to exploit these inefficiencies to profit from them. This is usually by being contrarian and going against the herd (all typical value investing terms). It’s the strategy most associated with the common investing phrase ‘buy low, sell high’. The value investor seeks out value stocks that are trading below their book value.

Please to post your answer.

Please to post your comment.

redicis follows

1 year ago

The phrase "buy low, sell high" encapsulates the core idea of value investing, where investors aim to purchase stocks at a price lower than their intrinsic value, expecting that the market wi

0 0 Reply

Please to post your reply.