1:33 AM
Aniket Kumar
Investment approach is preferred by people like Warren Buffett and Benjamin Graham, two very famous investors using this strategy. This is essentially where the good companies are undervalued by the market. Benjamin Graham invented a phrase, a margin of safety. In this context, means essentially to ensure that they are significantly undervalued. Many value investors to invest in stocks that are undervalued by more than 20%. That is 20% is the margin of safety.
Investment value can be very difficult. Finding good stocks to invest in this way can be very complex. It is important to keep things as simple as possible.
Stick to companies and industries that either you know or can learn through research. Do not invest in companies that do not understand.
Next do some calculations to make your own assessment of the stock. That you want to read some books on financial statement analysis and securities analysis. Benjamin Graham wrote a famous book entitled Security Analysis, you can start.
When you have an assessment in hand, you can compare it to the market whether it is undervalued, fairly valued or overvalued.
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