Value investing is a strategy that involves identifying undervalued stocks and buying them with the expectation that the market will eventually recognize their true value, resulting in capital appreciation.
Value investors believe the market is inefficient and there are often mispriced opportunities that can be identified through careful analysis.
They believe that by buying undervalued stocks, they can capture returns that the market has overlooked.
Value investors look for companies with strong financials, a solid track record of profitability, and a competitive advantage in their industry.
They tend to focus on fundamental analysis, examining financial statements and other data to determine a company’s intrinsic value.