Value Investing

Investing

Value investing is the strategy of buying securities priced significantly below their intrinsic value, originated by Benjamin Graham and famously practiced by Warren Buffett. Value investors look for unloved stocks with strong balance sheets, durable competitive advantages, and low valuation multiples (low P/E, P/B, P/S). The thesis: market prices oscillate around intrinsic value; patient investors capture the convergence. Value has dramatically underperformed growth from 2010-2021 as the largest tech companies dominated returns. Whether value's traditional outperformance returns depends on interest rates, market structure, and economic regime. Most retail investors should mix value and growth via broad index funds.