What is a Value Stock?

Value stocks are shares of companies that trade at a lower price compared to their intrinsic worth. Investors believe these stocks are underpriced due to market overreactions, temporary setbacks, or just being overlooked.

Why Do Investors Love Value Stocks?

✅ Buy Low, Gain High: These stocks have strong fundamentals but are priced lower than their true worth.
✅ Dividend Potential: Many value stocks come with stable dividend payouts.
✅ Long-Term Growth: They may take time to shine, but patience can lead to solid returns.

How Do You Spot a Value Stock?

📉 Low P/E Ratio: A price-to-earnings (P/E) ratio lower than the market average.
💰 High Dividend Yield: Steady income from dividends can be a sign of stability.
📊 Strong Financials: Look for companies with good cash flow, low debt, and a competitive edge.

Famous Value Investors:

🔹 Warren Buffett – The king of value investing, focusing on businesses with strong fundamentals.
🔹 Benjamin Graham – The pioneer who taught Buffett everything about value investing.

Check out 'The Intelligent Investor' by Benjamin Graham—a must-read for anyone serious about value investing.