Value investing is a timeless strategy. It focuses on buying undervalued stocks.
**Core principles of value investing**
– Look for discounts.
– Reduce downside risk.
– Ignore short-term noise.
**Examples of value opportunities**
– Classic value pinterest stock.
– Ford: cyclical but undervalued.
– Valuation below book value at times.
**Risks of value investing**
– Declining businesses.
– Not all undervalued stocks recover.
**Conclusion**
Value investing is about discipline and patience. By following fundamental analysis, intrinsic value, and margin of safety, investors find hidden gems.