Value Investment Strategy

Value investment strategy means investing in stocks (or securities as a whole) whose shares seem underpriced. Value investors look for stocks that are “on sale” or priced lower than their intrinsic value. The intrinsic price of a company depends on the company’s fundamentals. This means information about the company’s revenue, earnings, assets, liabilities, growth, and management. When the market realizes the mispricing, the market price will rise, netting the investor a nice little profit. Of course, the only way to know if a stock is underpriced is to study financial statements, competitors and the overall market trends.

We’ll show you how to do this in our further chapters.

And remember, you can also get predictions on the stock’s future performance by using the SprinkleBit’s VPI algorithm.