Value style investors don’t worry
about the market trend or the
direction of the economy, or
interest rates. They don’t study
stock charts.
They understand that at any moment,
just as many stocks re under-priced
as over-priced. Just as the prices
of the overvalued stocks will
eventually fall, the price of the
overlooked under-priced stocks will
eventually rise to their fair value.
In the same way that many stocks
have zoomed up because of high
expectations, many stock prices have
fallen due to market conditions or
just general bad news about a
company’s industry.
The value investor is able to
select companies whose stock is
selling at bargain prices, and are
willing to wait, maybe years if
necessary, for the market to
recognize the company and then to
benefit from the resulting gain in
the stock price.
Not every "value" stock is a
good value. Rather than being a
bargain, sometimes it's just
low-priced junk.
Other Stock Market Basics Topics:
-
Stock Market Investing – the
Right Way
-
More Stock Marketing Investing
-
How to Pick Winning Stocks
-
The Golden Rule of Investing
-
Avoid Psychological Traps to
Have Successful Investing
-
Changes in Stock Values Can Be
Big Numbers
-
How to Invest Smart
-
Stock Advice - Important Selling
Rules
-
Poor Stock Buying Decisions
-
Market Indicators
-
Stock Market Cycles
-
When a bear stock market may not
be a bear market
-
Stock Index Futures
-
Four Things that Affect Stock
Valuation
-
What is a P/E ratio?
- Value Investing
-
Cheap Stocks
-
What is a Financial Statement?
-
Analyzing Financial Statements
-
Stock Market Tip - Red Flags to
Look For When Investing?
-
The Annual Report – How to Read
-
Stock Market Analysts – Stock
Market Advice and Tips
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