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.
It's important to consider foreign stocks in order to maximize your returns.
A recent Roadrunner call shows the importance of knowing when to sell.
G-III Apparel keeps its winning streak alive.
It's not yet time yet to turn bearish on stocks.
A favorable court decision leads to a one-day jump of more than 28 percent.
The recent trend toward buyouts of small-cap biotech companies.
They don’t just grow your nest egg – they can prolong its life.
Is It Time to Go for Value or Momentum?
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?