Home » Quality or Value Investing: Which One is for Retail Investors? Definition, Strategies and Risks

Quality or Value Investing: Which One is for Retail Investors? Definition, Strategies and Risks

Quality or Value Investing: Which One is for Retail Investors? Definition, Strategies and Risks

Types Of Investment Strategies:

Investing is one endeavour in which there are many possible approaches to arriving at a desired financial goal through quality and value investing. The approach one adopts to reach the goal must give one enough conviction to stay invested through the journey, through good and bad times.

Particularly in difficult times, since that is when one’s commitment to one’s principles and methods is put to the test.

Value Investing Strategy:

Value investing is an approach where one simply buys those companies that are available at a significant discount compared to their intrinsic value. Benjamin Graham developed the concept of value investing in the early 20th century.

Together with David Dodd, he co-authored a book titled “Security Analysis” in which they discussed various value investing strategies.

By purchasing equities that appear to be underpriced, value investors might bet on those companies being re-discovered by other investors and then profit from the resulting price correction. In other words, buying low and selling high is the core principle of value investing, which may sound simple but is difficult to execute.

Continue reading this on the Jama Wealth Insights blog – Quality or Value Investing