Lux Investing
What is value investing?
I have recently read that Warren Buffett practice value investing. What is value investing?
Public Comments
- To understand the theory of value investing for a lay man let me try to explain in it easiest of words and sentences. Value investing is the process of selecting stocks that is available for investors at a price less than their intrinsic value. Such shares are said to be trading at undervalued rates. If market price of a stock is $10 and its intrinsic value is $12, it means this stocks is trading at an undervalued price (at a discount of $2 compared to its intrinsic value). So the next question is what is ‘intrinsic value’?....
- Yes WB is a value investor, When the stock or whole stock market drops way down, he swoops in and scoops them up cheap. No long explanation needed.
