What is value investing?

When it comes to investing to grow your wealth or save up for a goal, there are many choices you can make. Some people prefer trusting their funds to robo-advisors who make decisions within the parameters of user input. Some prefer to manage their own investments in the market through technical analysis of a stock’s performance. Some prefer value investing.

There is no one-size-fits-all approach. Many investors who prefer to have a say in their investments take a variety of approaches. Take a look below to learn more about value investing and why it can factor into your investing strategy.

What is value investing?

Value investing is a strategy in which an investor looks for stocks that appear to be undervalued and invests in them. They may find stocks that have yet to gain traction, or are low due to a market overreaction to bad news (like a pandemic) or upcoming catalysts that could bump up a stock’s value.

Think of it this way:

A value investor looks at a stock like a shopper would look at a gaming console on sale. Whether you buy it on sale or for full value, you can expect the same quality. If a value investor believes in the quality and value of a stock, they will buy it while it is undervalued and turn around to sell it for a profit later.

Talk to a ProVise CFP® professional about value investing

Identifying the value of a stock is easier said than done. It requires a lot of time, research and a level of risk. If you want to grow your wealth through investing, you should work with a financial professional who can help you identify investment opportunities that are right for you.

At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about value investing? Contact ProVise today to schedule a complimentary consultation.