{"id":12139,"date":"2022-12-29T19:55:17","date_gmt":"2022-12-29T16:55:17","guid":{"rendered":"https:\/\/www.robomarkets.com\/blog\/?p=12139"},"modified":"2024-01-30T18:31:43","modified_gmt":"2024-01-30T15:31:43","slug":"what-is-value-investing-and-how-does-it-differ-from-growth-investing","status":"publish","type":"post","link":"https:\/\/www.robomarkets.com.cy\/blog\/investing\/strategies\/what-is-value-investing-and-how-does-it-differ-from-growth-investing\/","title":{"rendered":"What Is Value Investing and How Does It Differ From Growth Investing?"},"content":{"rendered":"\n

In this article, we will explain what Value Investing is, how value stocks<\/a> differ from growth stocks<\/a> and the advantages and drawbacks of this type of investing.<\/p>\n\n\n\n

<\/span>Value investing definition <\/span><\/h2>\n\n\n\n

Value Investing is a strategy based on identifying and selecting undervalued stocks with the use of technical analysis<\/a>. Quite often, such stocks include the securities of large companies with a high dividend yield<\/a>.<\/p>\n\n\n\n

There are times when the market reacts to negative events too dramatically, thereby provoking a decline in the stock prices<\/a> of some companies, which does not comply with the long-term fundamental performance of the said companies. This excessive reaction of market players allows for buying stocks for less than their intrinsic value, i.e., less than they are worth.<\/p>\n\n\n\n

The strategy of Value Investing is based on the concept presented in 1920 by two Columbia Business School professors – Benjamin Graham and David Dodd. It was improved in 1934 and later became popular after Graham published his book \"The Intelligent Investor\" in 1949.<\/p>\n\n\n\n

<\/span>Legendary value investors<\/span><\/h2>\n\n\n\n