Value investing is the tried and true method of building long-term wealth by investing in under-appreciated companies. While the stock market has seen many innovations since the birth of value investing in the late 1920’s, the basic principle remains the same—good companies bought at a good price, make for great value investments.
Check out the value investing archive below for in-depth commentary on investing in companies with strong fundamentals. You will uncover our top market insights, latest trend analysis, and forward-thinking stock picks among some the most stable blue-chip companies.
To learn how you can increase the effectiveness of your value investments, check out our free stock diversification and asset allocation report, which uncovers the strategies stock market professionals use to build lasting, long-term wealth for their portfolios.
Companies with predictable earnings have historically outperformed because investors value stability and are willing to pay for it. Fortunately, predictable companies are also easier to value accurately using snapshot earnings multiples, but it only works if one spends the time analyzing the income statement and isolating core earnings from reported earnings. Ignoring the anchoring bias of current market prices is the key to value-investing success.
Determining the value of a stock is important to successful investing. However, for growth investors, a stock's present value is based on an accurate forecast of future earnings, which is no easy task. Which is better: the false certainty of a discounted cash flow (DCF) analysis or the admitted inaccuracy of a snapshot earnings multiple?
New research concludes that investors can benefit from the January Effect without dumpster diving in microcaps or companies with scary price declines. Jim offers up some ideas to take advantage of the phenomenon.
Baseball and investing have much more in common than you might think.
Investors with a long-term perspective and a goal of building wealth have a completely different perspective on bear markets than traders.
Sick and tired of the "doom and gloomers?" If investors were to implement the Ivy timing system, these chicken littles would go out of business in a flash.
The current bull market in stocks is like an ocean that raises all boats -- even boats that are likely to sink. Avoiding such fair-weather investments is the key to investment success and the Roadrunner Stocks Safety Rating can help lead the way.
Understanding a company's balance sheet provides an investor with two separate, but equally valuable, pieces of information: (1) stock valuation; and (2) risk of bankruptcy.
The party may soon be over for many utility sector investments. Here, we pinpoint some of the best and safest utility stocks according to time-tested criteria.
The stock market continues to rise as the real economy remains stuck in neutral thanks to monetary stimulus. When the monetary music stops, large caps will drop based on "risk-off" macro beta but small caps will perform based on fundamentals.