What Is Value Investing Strategy?

Value Investing

Will You Buy Car @50% Discount Even If You Don’t Need It & Sell At Way Higher Price Than Your Purchase Price If You Don’t Keep It

  1. Value Investing Works On The Same Concept Of Above Mentioned Example.

  2. You Pay Lot Less For Phenomenal Stock When It’s On Sale In Market.

  3. Now You Have Bought Stock At Low Price, You Make Profit By Selling It When It Reaches Its True Value.

  4. To Check Undervalued Stock

    Check Ratios Of Lower Than Average Price To Book Value, A Low PE Ratio Results In High Dividend Yields.

  5. “It Is Much Better To Buy A Wonderful Company At A Fair Price Than A Fair Company At A Wonderful Price.” -Benjamin Graham

  6. Coming Up With Fundamentals Of Value Investing

  7. Look For True or Intrinsic Value

    Find A Concrete Number By Different Valuation Models Like
    Dividend Discount Model
    Discounted Cash Flow Model
    Comparable Companies Prices

  8. Avoid Following The Herd

    “Be Greedy When Others Are Fearful And Be Fearful When The Others Are Greedy.” -Warren Buffett

    For Value Investing Avoid Following The Herd Don’t Buy Stocks Just Because Everyone Is Buying.

  9. Always Have A Margin Of Safety

    Its A Guiding Philosophy In Value Investing To Give Yourself Benefit Of Doubt By Keeping Margin Of Safety.

  10. If You Calculate True Value As 1000, Buying Stock Anything Below That Is Undervalued, If You Keep Margin Of Safety As 30% So You Will Buy Stock At Anything Below Or Equal To 700.


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