Simple Principles of Value Investing

Value investing is a term used to describe a particular style of acquiring, holding, and selling investments. The core tenet of the value investment style is to identify and acquire assets at a price that is less than their intrinsic value.

So there are three elements to understanding value investing:

•  First, understand what constitutes an 'investment'

•  Second, understand how to decide an investment's intrinsic value.

•  Lastly, understand how to acquire the investment for a price that is less than its intrinsic value.

And that's it. It's simple but it's not easy.