"Value Investing : Another Fundamental Style of Investment "

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Value Investing

·        There are two types of fundamental approach or style while investing in stock or equity.
·        Value Investing is one of the two fundamental styles of investment.
·        Value Investing was introduced by Benjamin Graham who was mentor of the legendary investor Warren Buffett.
·   Value Investors buy Value Stocks, which could be under-priced and ignored by investors but have a potential for appreciation.
·         Value stocks have potential to bounce back in time when its true value is recognised by other investors.
·         Value stocks usually have above-average dividend yields.
·        Value stocks are less volatile in price fluctuation and more safe regarding investment.
·        Value investing is not a static concept , i.e. a value stock seizes to be a value stock when its true value is realised.
·    Value stocks have high dividend yield and below-average valuation as measured by ratios like Price-to Earning, Market Cap-to-Sales and Price-to-Book Value.
 ·    These stocks may perform best in a down stock market or in the initial stages of market recovery. But these stocks may be punished in a growing stock market. 
·        Example of value stock in Indian market now ……… Coal India.
    

Happy Investing !!! 





##  Common Investors may collect ebook from the following link for mastering the basics of investment :


### Govt Job Aspirants in Mechanical Engineering (Degree or Diploma) may collect ebook from the following link for cracking Competitive Exams :

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Comments

  1. Unknown8 March 2018 at 11:00

    Pradip, growth investing vs. value investing is okay. What about growth option vs dividend option ?

    ReplyDelete
  2. PRADIP11 March 2018 at 00:49

    Your answer is given in the following link:

    https://smartifinance.blogspot.in/2017/10/mutual-fund-growth-vs-dividend-option.html

    ReplyDelete
  3. PRADIP11 March 2018 at 00:53

    You can find my article 'Mutual Fund: Growth vs Dividend option' published in this blog.

    ReplyDelete
  4. okp10 August 2018 at 22:26

    Nice post, thanks!

    ROI

    ReplyDelete

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