Return of the bargain hunter
Value investing is all about finding bargains. The market prices stocks based on supply and demand, but this price may sometimes be below what investment experts assess to be a “fair” price.
As the father of value investing, Benjamin Graham, has said: “The intelligent investor is a realist who sells to optimists and buys from pessimists.”
The idea behind value investing is that the stock is bought on the cheap, and eventually the market will realise it is actually worth more than it is trading for and then recalibrate the price upwards, thereby returning a profit for the investor.
Growth investing, on the other hand, is all about finding stocks that will grow faster than the rest of the market.
If Graham is the pioneer of value investing, the mantle in the growth domain certainly goes
