Value Investing

It is a preferred approach to investing, as Warren Buffett and Benjamin Graham, two very famous investors using this strategy. This is mainly if you can find good companies that are undervalued in the market. Benjamin Graham invented the phrase, margin of safety. In this context, means that they are significantly undervalued. Many value investors want to invest in stocks that are undervalued by more than 20%. This is a 20% margin of safety.

value investing can be very difficult. Finding good stocks to invest in this way can be very complex. It 'important to keep things as simple as possible.

Closed businesses and industries that they know or learn how to study. Do not invest in companies you understand.

Next do some calculations to make your own assessment of the actions. This will need to read books on financial statement analysis and stock analysis. Benjamin Graham wrote a famous book "Security Analysis can start.

Once you have an assessment in hand, you can compare the market value to see if it is undervalued or overvalued the property appreciates.