What Is Value Investing?
Definition and plain-English explanation of "Value Investing"

Value investing involves buying stocks that appear to be trading below their intrinsic (true) value. Value investors look for undervalued companies with strong fundamentals — low P/E ratios, high dividend yields, and solid balance sheets — that the market has overlooked or temporarily beaten down. Warren Buffett is the most famous value investor.
Related Terms
Diversification is the strategy of spreading investments across different assets, sectors, and geogr...
Dollar-cost averaging (DCA) involves investing a fixed amount of money at regular intervals regardle...
Growth investing focuses on companies expected to grow their revenue and earnings significantly fast...
An ETF is a basket of securities that trades on a stock exchange like a single stock. ETFs typically...
Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.