Value Investing

An investment strategy that focuses on buying undervalued stocks that are underappreciated by investors and the market at large, Value Investing actively ferret out stocks from a quality company that are underestimated by other investors. Value investors use financial analysis, don't follow the herd, and are long-term investors of quality companies. Through fundamental analysis, value investors focus on buying with a margin of safety, doing detective work to find these secret sales on stocks and buying them at a discount compared to how the market values them. Intrinsic value is a combination of using financial analysis such as studying a company's financial performance, revenue, earnings, cash flow, and profit as well as fundamental factors, including the company's brand, business model, target market, and competitive advantage.