Value Investing is an investment strategy that involves buying financial assets that appear underpriced, i.e., assets that are trading for less than their intrinsic value, thus, maximizing returns.
Value investors heavily rely on fundamental analysis and valuation methods to determine the intrinsic value of a company and also to project its growth. They look for safe and sound companies that show great growth potential but, for some reason, are mispriced by market participants.
Considered the father of Value Investing, Benjamin Graham—together with David Dodd—taught the first lessons on Value Investing in 1928, at the Columbia Business School, giving birth to their seminal work Security Analysis in 1934. Benjamin Graham mentored the most successful and famous value investor of all time, Warren Buffett.
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