Welcome to this week’s edition of Stock Market Saturdays (SMS). Today, I want to talk about value investing. The thinking behind value investing is just what it seems on the surface – buy stocks that are undervalued, so that when their true value is realized the price will increase and you’ll make a profit.
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
– Warren Buffett
Warren Buffett is one of the most renowned investors around, and most of his investments are based on fundamental value investing principles. So, how do you identify whether a stock is a “good value” or if it’s just a low price because it’s junk?