Image for Introduction to Value Investing

Introduction to Value Investing

(1 of 6)

One strategy investors use is to look for investments that are currently undervalued. This is called value investing.

What you will learn

  • What Is Value Stock?
  • What Is Value Investing Strategy?
  • What to Look For in Value Investing
  • Use Price/Book Ratios to Find Value Investments

What do you know?

Introduction to Value Investing

Not all investors choose the most popular stocks. Some deliberately choose stocks that are out of favor … at the moment. Such people are called value investors, and there is a reason behind their contrarian choices in stocks. In theory, a stock that is out of favor with investors is probably trading lower than its true value, and when investors realize this, the price will rise.

Value investing typically applies to stocks, though it can in theory apply to other investments as well.