Value investing is an investment paradigm that involves picking stocks that appear to be trading for less than their intrinsic or book value.
Originating with Benjamin Graham and David Dodd in the 1920s, and later popularized by Warren Buffett, the core concept revolves around 'Margin of Safety'.
Value investors actively seek out undervalued companies whose true market worth isn't reflected in the current stock price. This often requires deep fundamental analysis of financial statements.
Patience is key in value investing. Markets can remain irrational for longer than one might expect, so holding undervalued assets until the market recognizes their true worth is essential.