Investment gurus often talk about value investing. What is value investing and is it a profitable approach to building your retirement nest egg or simply getting rich? Here is what Investopedia says about value investing.
[Value investing is t]he strategy of selecting stocks that trade for less than their intrinsic values. Value investors actively seek stocks of companies that they believe the market has undervalued. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with the company’s long-term fundamentals. The result is an opportunity for value investors to profit by buying […]