Value Investing

By IntroBooks Team

The Value Investing can be defined as a set of principles that,
when understood and followed, lead the investor to success in
a long-term investment strategy.
 
Fundamentally, it has to do with buying great companies
actions, but they are poorly evaluated due to factors inherent in
the stock market, such as the unpredictability and irrationality
in the short term.
 
It is common that you reduce the market value of stock for
less than its real value. But a shrewd investor who knows the
concepts and strategies of value investing, know how to take
advantage of this momentary incoherence.
 
The Valu Investing concept was introduced by Benjamin
Graham in his book Security Analysis, published in 1934. Since
then, investors know that the stock market should be treated
with caution and with long-term follow bias successfully
Graham's teachings.

• Language: English
• Publisher: IntroBooks
• Release date: Dec 2, 2019
• ISBN: 9781393536987

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Value Investing

IntroBooks #199

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Copyright © 2016 Can Akdeniz

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Description

The Value Investing can be defined as a set of principles that, when understood and followed, lead the investor to success in a long-term investment strategy.

Fundamentally, it has to do with buying great companies actions, but they are poorly evaluated due to factors inherent in the stock market, such as the unpredictability and irrationality in the short term.

It is common that you reduce the market value of stock for less than its real value. But a shrewd investor who knows the concepts and strategies of value investing, know how to take advantage of this momentary incoherence.

The Valu Investing concept was introduced by Benjamin Graham in his book Security Analysis, published in 1934. Since then, investors know that the stock market should be treated with caution and with long-term follow bias successfully Graham's teachings.

Introduction

The concept of value investing came in 1934, in Security Analysis work of Benjamin Graham and David Dodd. Later, Warren Buffett, coached by Graham, was to become one of the richest men in the world and considered by many the best investor of our time, using the concepts of value investing. Because of this, Buffett is considered the leading popularizer of value investing.

The first point to be savvy when it comes to value investing is the difference between value and price.

Value is something intrinsic to the company, i.e., a company has high or low value depending on its quality as an organization, regardless of its current price;

Price is the monetary amount which the market assigns to a