1. Value Investing: Introduction
  2. Value Investing: What Is Value Investing?
  3. Value Investing: How Stocks Become Undervalued
  4. Value Investing: Finding Undervalued Stocks
  5. Value Investing: Finding Value In Financial Reports And Balance Sheets
  6. Value Investing: Finding Value In Income Statements
  7. Value Investing: Managing The Risks In Value Investing
  8. Value Investing: Famous Value Investors
  9. Value Investing: Couch Potato Value Investing
  10. Value Investing: Common Alternatives to Value Investing
  11. Value Investing: Conclusion

Investors are often looking for ways to beat the market. If you’re one of those investors, consider following a proven strategy that has been implemented by the investment greats. Value investors figured out how to beat the average annualized returns of the S&P 500 a long time ago, and many have successful track records spanning several decades to prove it. The most famous value investor is Warren Buffett, but there are many others, including Benjamin Graham, David Dodd, Charlie Munger, Christopher Browne and Seth Klarman.

If you’re an avid sale shopper, you already have some of the most important skills a value investor needs. You know that the time to buy a 12-pack of soda is not when it’s regularly priced at $6. Perhaps the soda is, in fact, worth $6, but you know that if you wait for the right opportunity, like the week before the Super Bowl or the Fourth of July, you can get it for about half that. Then, you’ll buy enough soda to last you several months, or maybe even the whole year. You’ll be getting a $6 value for just $3.

Apply this idea to stocks and you have value investing, plain and simple. Any time you buy a stock, you want its intrinsic value to be higher than its market price. If you have the right temperament and you’re willing to put in the effort, you can learn to successfully invest in individual stocks using value investing techniques. This tutorial will help you get started. (To learn more, refer to The Value Investor’s Handbook.) 


Value Investing: What Is Value Investing?
Related Articles
  1. Investing

    A Guide to Value Investing Strategies

    Learn the value investing techniques that legendary investors like Warren Buffett and Peter Lynch have used to identify undervalued companies that pay off.
  2. Investing

    Is Warren Buffett Really A Value Investor?

    Warren Buffett has long been hailed as a value investor. But is that statement still accurate?
  3. Investing

    The Caustic Soda Cycle

    This cycle seems to have peaked as supply will increase as the economy recovers. This will be a relief to buyers of this important chemical.
  4. Investing

    The 7 Best Books for Nervous Investors to Read

    Educating yourself can make it easier to invest in uncertain times. These seven books may help.
  5. Investing

    What Is The Intrinsic Value Of A Stock?

    Intrinsic value reduces the subjective perception of a stock's value by analyzing its fundamentals.
  6. Insights

    4 Reasons Buffett's Portfolio Is Irrelevant to Today's Investors (AXP, KO)

    Find out why investors should not try to emulate Warren Buffett's stock portfolio and why they could not achieve his same level of success.
  7. Investing

    Why Pepsi May Spend $1 Billion on a Madonna-Backed Coconut Water Company (PEP)

    The global beverage giant seeks to diversify beyond soda sales as consumers demand healthier drinks.
Frequently Asked Questions
  1. What will happen to my SEP IRA if I leave my current employer?

    Because the funding vehicle for the SEP is a Traditional IRA, the same rules that apply to a Traditional IRA also apply to ...
  2. I want to close my IRA account. What percentage will I lose to tax?

    You can move the amount by means of a trustee-to-trustee transfer to another IRA, or roll over the amount to your 401(k). ...
  3. Can a spouse who is not named as a beneficiary receive assets from an IRA?

    Generally no: The designation of beneficiary form dictates who receives the assets – unless the named beneficiaries choose ...
  4. Can the non-spouse beneficiary of an IRA name a successor beneficiary?

    Whether an Individual Retirement Account beneficiary can name a successor beneficiary is determined by the provisions of ...
Trading Center