What does value investing focus on?

Value investing focuses on stocks believed to be undervalued in price. This strategy involves analyzing a company's fundamentals, such as its earnings, dividends, assets, and overall economic conditions, to identify stocks that are trading for less than their intrinsic value. Value investors seek to purchase these undervalued stocks with the expectation that the market will eventually recognize their true worth, leading to an increase in price over time.

The appeal of value investing lies in the potential for substantial returns when the market corrects itself, allowing investors to benefit from the disparity between the current market price and the stock's perceived true value. This approach contrasts with other strategies that may emphasize short-term gains or high-risk investments, highlighting the fundamental principles of assessing long-term growth potential based on analysis rather than market trends or timing.