Value investing is an investment strategy that involves buying undervalued assets or securities and holding onto them until their value increases. This approach is based on the belief that the market sometimes misprices assets, and that by identifying and purchasing undervalued assets, investors can generate higher returns than they would by buying assets at their fair market value.
Value investors look for assets that they believe are trading at a price that is lower than their intrinsic or fundamental value. They typically use a variety of tools and techniques to identify undervalued assets, such as financial analysis, industry and company research, and comparison with similar assets.
Value investing is associated with legendary investors such as Warren Buffett and Benjamin Graham, who popularised the approach and applied it with great success. It is a long-term investment strategy that requires patience and a willingness to hold onto investments for extended periods of time.
