InvestmentFinancial Glossary
Value Investing
Definition
An investment strategy that involves buying stocks that appear to be trading below their intrinsic value based on fundamental analysis. Value investors look for companies with low PE ratios, high dividend yields, strong balance sheets, and temporary problems that the market is overreacting to.
Why It Matters
Value investing has a proven long-term track record globally and in India. Warren Buffett, its most famous practitioner, has compounded wealth at 20%+ annually for decades. However, value investing requires patience — value stocks can remain undervalued for years before the market recognizes their worth. It is a strategy, not a get-rich-quick scheme.