Value Investing

Market Terms

We don't know everything about the markets.  We're just devoted to learning.  Taken from those smarter than ourselves, here's how we define Value Investing.

A strategy for investment that involves choosing stocks that appear to be under or overvalued relative to their intrinsic or book value.  Value investors believe that the market reacts disproportionately strongly to good or bad news, which results in price movements that do not correspond to a company’s long-term fundamentals.  The value investor thus actively searches out stocks they believe the market is undervaluing.  Warren Buffett is probably the best-known value investor.