Value Investing: A Simple Step-By-Step Guide

15/05/2022 9 min

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Episode Synopsis

There are many investment strategies used by a myriad of both individual and professional investors. Some prefer the growth strategy while others prefer a value approach. While both good in their own regard, a combination of the two trumps them both, and here’s why. In this post, We will discuss about Value Investing.
The fundamental goal of value investing is, quite simply, to buy a stock when it is low and sell when it is high. Seems easy, right? Though it may seem like common sense, the vast majority of investors do not do this. Very few use this strategy effectively. Some of the greatest investors of all time, such as Warren Buffett and Benjamin Graham, used a value approach in their investing careers.
The primary characteristic of a value investor is that they love finding good deals. It might be best to think of them as shoppers who scour through the Sunday newspaper for coupons. This is exactly what they do, but instead of looking through the paper for good deals, they look through the universe of stocks.