Value Investing


"Warren Buffett once wrote that the concept of value investing is like an inoculation- — it either takes or it doesn’t — and when you explain to somebody what it is and how it works and why it works and show them the returns, either they get it or they don’t." - Seth Klarman


Big Idea

If you're an avid sale shopper, you already have some of the most important skills a value investor needs. You know that the time to buy a 12 pack of soda is not when it's regularly priced at $6.

Perhaps the soda is, in fact, worth $6, but you know that if you wait for the right opportunity you can get it for less. The right time to buy soda is not even when it is on sale for $4.

No, you want to wait until the soda sales cycle hits a low and you can purchase a 12 pack for just $2. Then, you'll buy enough soda to last you several months, or maybe even the whole year. You'll be getting a $6 value for just $2.

Apply this idea to stocks and you have value investing, plain and simple.


Hall of Fame

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Lecture on Value Investing



Visit our featured Value Investors:

Ben Graham

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Warren Buffett

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Seth Klarman

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