"The stock market is filled with individuals who know the price of everything, but the value of nothing."

"The stock market is filled with individuals who know the price of everything, but the value of nothing."

-Phillip Fisher

BY SAHIL DESAI  |   2 Mins Read                                                                                                        

Value Investing

If you know the true value of something, you can save a lot of money and even earn high profits by buying it on discounted price. Value Investing is one such example which in lay man's term is buying low and selling high. Buying low and selling high makes a lot of sence in theory, but try and apply that to a complex moving parts of the stock market and it won't look quite as simple as it sounds.

Value Investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value. Value investors actively look for stocks they think the market is underestimating. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond to a company's long-term fundamentals. This overreaction offers an opportunity to earn profit by buying stocks at discounted prices and later selling it at high price.