Value Investing Strategy
Find undervalued stocks with strong fundamentals and potential for long-term growth.
Strategy Overview
Value investing is a strategy pioneered by Benjamin Graham and Warren Buffett that focuses on identifying companies trading below their intrinsic value. This approach seeks out companies with strong fundamentals, reliable cash flows, and good management that are temporarily undervalued by the market.
Key Criteria
- Strong return on equity (ROE)
- Low debt-to-equity ratio
- Consistent earnings growth
- Current price below intrinsic value
- Margin of safety in valuation
Expected Outcome
- Long-term capital appreciation
- Lower volatility than growth stocks
- Often includes dividend income
- Portfolio stability during downturns
- Compounding returns over time
Stock Screener
Warren Buffett's Principles
Circle of Competence
Invest only in businesses you understand. Stay within your circle of competence and avoid speculating in areas outside your expertise.
Margin of Safety
Always buy with a margin of safety — the difference between a company's intrinsic value and its market price — to reduce investment risk.
Business Quality
Look for businesses with strong competitive advantages, consistent earnings, high ROE, and manageable debt levels.
Long-Term Perspective
"Our favorite holding period is forever." Invest with a long-term mindset rather than focusing on short-term market fluctuations.