Investopedia

Continue to Site »

Investment Philosophy

Filed Under » , , , ,
Dictionary Says

Definition of 'Investment Philosophy'

A set of guiding principles that inform and shape an individual's investment decision-making process. Examples of investment philosophies, or styles, include:

Value Investing: Seeking relatively undervalued stocks and believing they will eventually produce strong returns.

Fundamentals Investing: Identifying companies with strong earnings prospects.

Growth Investing: Buying into companies that have promising emerging products or services that hold promising growth potential.

Socially-Responsible Investing: Looking for companies that adhere to certain set of moral and/or ethical business standards.

Technical Investing: Examining past market data to look for hallmark visual patterns in trading activity to make buy and sell decisions.

Contrarian Investing: Making investment decisions in direct opposition to the market majority (selling when others are buying).
Investopedia Says

Investopedia explains 'Investment Philosophy'

The most well-known professional investor holding a value investment philosophy is the Oracle of Omaha, Warren Buffett. He arrived at his investment philosophy in large part due to the influence of his college professor (and fellow value investor) Benjamin Graham. Marc Faber (founder of Marc Faber Limited) is a well-known contrarian investor, betting against the market and making enormous profits (and some marked losses).

Articles Of Interest

  1.

    Thomas Rowe Price: Always Right

    This great investor mastered a new type of investing with every new market he faced.

  2. An Introduction To Behavioral Finance

    Curious about how emotions and biases affect the market? Find some useful insight here.

  3. What Is Warren Buffett's Investing Style?

    Learn the main principles that Warren Buffet uses in assessing a company. His take on value investing may surprise you.

  4. The Intelligent Investor: Benjamin Graham

    Learn about the man who mentored Warren Buffett, who eventually became the investing "Oracle of Omaha".

  5. The Value Investor's Handbook

    Learn the technique that Buffett, Lynch and other pros used to make their fortunes.

  6. Pick Stocks Like Peter Lynch

    Learn the basic tenets that helped this famous investor earn his fortune.

  7. Value Investing Using The Enterprise Multiple

    This simple measure can help investors determine whether a stock is a good deal.

  8. Value Investing + Relative Strength = Higher Returns

    Buying value stocks that are moving higher helps investors steer clear of value traps.

  9. Warren Buffett: How He Does It

    We look at the Sage of Omaha's methodology for evaluating value stocks.

  10. Investing In REITs Instead Of Property

    Learn why this one particular REIT is a better investment than holding physical property in your retirement portfolio.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center