Embracing the concept of value investing from "summary" of Rule #1 by Phil Town
Value investing is all about finding great companies and buying them when they are on sale. It's about investing in businesses that are undervalued by the market, businesses that have a strong moat and a durable competitive advantage. Warren Buffett, the most successful investor of our time, is a value investor. He looks for companies that are trading at a discount to their intrinsic value, companies that have a strong balance sheet and consistent earnings growth. By embracing the concept of value investing, you are essentially saying that you believe in the long-term value of a company. You believe that over time, the market will recognize the true worth of the business and the stock price will rise to reflect that value. Value investing is not about trying to time the market or predict short-term fluctuations. It's about buying and holding onto great companies for the long haul. To be a s...
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