Fundamentals of Value Investing
Value investing is one of the most popular and most successful investing strategies of all time. There are many different pundits who proclaim that their strategy is best. However, talk is cheap. What is more valuable is the results that have come about due to an investing strategy, and value investing has led to multi billionaires. For instance, Warren Buffett used the concepts of value investing to become on the richest men in the world today.
Value investing was established by Benjamin Graham and David Dodd, two professors at the Columbia Business School. The basic premise behind this strategy is that market actions and reactions can temporarily affect the market price of a stock. Nevertheless, the long term intrinsic value of a company will determine the long term price of a stock in the long run.