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"Value Investing: What is it?"

16. 06. 17
posted by: Ryan Rowe
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Value Investing

 

"Value Investing: What is it?"

 

I am considered a Fundamentalist Investor. Taking it one step further a fundamentalist investor is considered a Value Investor while the investor I learned the most from was Benjamin Graham…

 

 Benjamin Graham wrote the book “The Intelligent Investor.” This is by and far one of the most influential pieces on Value Investing and definitely worth a read if you are interested in learning more about investing. A Value Investor is defined by Investopedia as:

 

The strategy of selecting stocks that trade for less than their intrinsic values. Value Investors actively seek stocks of companies that they believe the market has undervalued.

 

One key to Value Investing is to understand the financials behind a company. Some of the key numbers include: Book Value, Total Debt, P/E Ratio, Total Cash, Current Ratio, EPS, Dividends, and Short Term Liabilities to name a few. The financials behind a company can shed light on the possibility long term sustainability of a company.

 

 

Another key to Value Investing is to look at the Sector a company belongs in. Sometimes, a good company’s stock price can be taken down because the individual sector or the overall market has taken a downturn. It can be discouraging for a Value Investor when the price takes a long time to appreciate, but one of the key principles to Value Investing is Patience. Remember it’s your long term plan that will win in the end. 

 

Creating Your “Financial Future

 

 

R&R Stewardship Partners

www.rrstewardship.com

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Phone: 330.204.1899

 

 

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sources: www.canstockphoto.com and www.investopedia.com