Should You Buy On Dip?

Value investing focuses on stocks that are undervalued by the market.

The goal is to increase stock prices as more people recognize the true intrinsic value of a company’s business. This maybe a great idea on fundamentally solid company that has faced some bad news.

Key Characteristics of a Great Value Stock:

Value stocks are inexpensive compared to their assets or financial metrics. The best value stocks have well-established businesses, consistent profitability, stable revenue streams, and generally are regarded as solid companies. 

Value Investing Philosophy:

Benjamin Graham and David Dodd’s teachings at Columbia Business School influenced value investing. Early value opportunities included stocks trading at discounts to book value, high dividend yields, and low price-to-earnings or price-to-book ratios.

How To Finding Value Stocks:

Research is essential; analyze out-of-favor stocks to assess intrinsic value versus current stock price. The difference between these is where you find gold mine. Just ask warren buffet. 

Look under Fundamental Analysis-Valuation here for step-by-step in finding value stocks.