Page 81 - Intelligent Investing (3)

Value Investing

Value Investing is the art of buying stock that is valued at a higher rate than it is

currently being traded at.

For example if AT&T has been priced at $30 for the last month and today it

dropped to $27. That’s $3 of potential profit per share if you buy

Only when the fundamentals of a company are in good standing ( earnings,

market share, brand name, product) but bad news tanks the market and provides

a buying opportunity for you to profit

Recessions/ bad news/ earnings and product releases are great times to take

advantage of this principle