Value Investing is seen by many as a form of “smart investing”, as it is in many ways the polar opposite of speculation and impulse buying (or selling). The reputation of value investing has been polished by its association with legendary investor Warren Buffett. Buffett, however, has refined the original concept of value investing from investing in average companies selling at a bargain prices to “finding an outstanding company at a sensible price”.
Last Modified: 06 September 2013 Posted by Indian Hidden Gems
Value mutual funds are well known to have lower volatility than growth mutual funds. Numerous industry and academic studies have shown that value stocks as a group performed far better than growth stocks in bear market. Many technology and internet so called "growth stocks" lost 90% to 99% of value in just a couple of years after 2000 while many value stocks went up during the same time frame.
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