Principle of Value Investing

Value investing is an approach where investors seek to buy stocks that are undervalued compared to their true worth, based on factors like earnings, assets, and future potential. The idea is to identify companies whose market prices don't fully reflect their intrinsic value, often due to temporary issues or market overreactions. By purchasing these undervalued stocks and holding them until their true value is recognized, investors aim to achieve growth and returns. This strategy emphasizes careful analysis, patience, and a disciplined approach to investing in quality companies at a bargain price.