Value Stocks

The search for value is key ๐Ÿ” But some stocks have already earned this label ๐Ÿ‘€Letโ€™s explore why.

Did you know that stocks have many different types of values? ๐Ÿค”

Stocks have a stock price, intrinsic value and potential future values ๐Ÿคฏ

Only the stock price is set, but even that changes all the time ๐Ÿท๏ธ

Intrinsic value and the potential future value are subjective though ๐Ÿ˜ฅ

So, some investors try to identify stocks that will be valuable in the future and worth more than their current price! ๐Ÿ’ก

To be exact, value stocks are stocks of companies that are trading at a lower price compared to their intrinsic value ๐Ÿ“ˆ

Investors who invest in value stocks are looking for companies that they believe are undervalued by the market ๐Ÿ’ฐ

Value stocks are usually from companies that have been in the market for a while and have a history of stable earnings ๐Ÿ’ช

Investing in value stocks requires patience and research as it may take time for the market to recognize the company's true value๐Ÿ”

One advantage of investing in value stocks is that they can provide a margin of safety, as they are already trading below their intrinsic value ๐Ÿ›ก๏ธ

Another advantage is that they may have lower volatility compared to growth stocks ๐Ÿ“‰

However, one downside of investing in value stocks is that they may not experience significant price appreciation in the short term ๐Ÿ“‰

In addition, there is no guarantee that the market will recognize their true value ๐Ÿ’ธ

Even though finding value stocks can be hard, some of the most famous investors believe in value investing and value stocks ๐Ÿš€

Test your knowledge

Value stocks cost less than their

Choose an option

What is an advantage of investing in value stocks?

Choose an option

What is a potential downside of investing in value stocks?

Choose an option

What's next?

Featured Lessons