WHAT IS VALUE INVESTING?
Value Investing is an investment strategy based on the theory that Benjamin Graham and David Dodd began teaching at Columbia Business School in 1928. Benjamin Graham was also the inspiration for the success of Warren Buffett, the world’s most famous investor.
VALUE APPROACH: THE BENEFITS
- The Value approach is an active strategy that generates independent investment ideas.
- It means that investors can invest only in businesses that they know inside-out and provides an ample safety margin for their investment.
- A fall in equity prices is, more often than not, an opportunity to buy them more cheaply and be sure of higher returns.
- Value Investing 3M’s: Management, Moat, Margin of Safety.