Value investing is an investment strategy seeking to target business that is selling at a level below their perceived intrinsic value. The investment philosophy was developed by Benjamin Graham and David Dodd, and it was elaborated in the book Security Analysis.
Value-driven opportunities are found by evaluating companies according to book value or tangible book value. It is understood that value stocks are those trading at a discount to their book value or tangible book value or intrinsic value.
* What are value stocks?
Value investing is a long-term strategy seeking to buy such stocks. But not all quantitatively cheap stocks reflect value, therefore the focus on quality of businesses increased as quantitatively cheap stocks could sometimes reflect true value rather relatively lower multiples than peers.
- Modern considerations in Value Investing
- Competitive advantages
- Cash flows and applications
- Barriers to entry
- Balance sheet