Glossary

Value investing is an investment strategy where investors actively seek out stocks that they believe are undervalued compared to their intrinsic value. 💡

These investors analyse a company's fundamentals, such as earnings, dividends, and assets, to determine if the current market price is lower than what it should be. The idea behind value investing is that, over time, the market will eventually recognise the true value of these undervalued stocks, and their prices will rise, resulting in significant gains for the investor.

Example: A famous value investor, Warren Buffett, purchased Coca-Cola stock in 1988 when he believed it was undervalued. Over time, the stock price increased significantly, generating substantial profits for Buffett's company, Berkshire Hathaway.

Fun fact: Benjamin Graham, known as the "father of value investing", was the mentor of Warren Buffett. Graham's book, "The Intelligent Investor," is considered a classic in the world of value investing and has influenced many successful investors, including Buffett himself. 🧐