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Finance: What is a value investor? 1 Views


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Description:

What is a value investor? Value investors try to make money by investing in stocks that they think are undervalued by the market. Because they think they are undervalued, they expect the price to increase, and to profit from that.

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Transcript

00:00

Finance allah shmoop what is a value investor Well of

00:07

value investors and investor who buy stocks that she believes

00:10

have quote hidden unquote value That little wall street just

00:13

isn't appreciating So uh aren't all investors value investors Well

00:18

kind of yes And really no value investor Generally speaking

00:22

in this context waits until a stock with good core

00:25

assets stumbles The company falls on short term hard times

00:30

and maybe quote should unquote traded twenty bucks a share

00:34

But wall street was angry and disappointed and hurt that

00:37

the company grew revenues only seven percent instead of the

00:41

expected fifteen percent for a quarter to and the streets

00:44

sold down the stock from eighteen to seven Well the

00:47

proverbial baby is thrown out with the bathwater And well

00:51

at this point the value investor steps in and buys

00:55

the stock big They hold the stock it's a tte

00:57

seven box The company slowly fixes itself in the stock

01:01

price gradually creeps upward back to that eighteen figure And

01:05

then the value investor likely sells the stock when it

01:08

goes from cheap to being fairly priced like you know

01:11

back in that eighteen twenty dollars target price kind of

01:14

thing Yeah that's where it was supposed to be earlier

01:16

all else being equal Well the normal cycle would then

01:18

have the value investors sell those shares to a growth

01:22

or mo mentum investor Who's credo is more like buy

01:25

high sell higher versus the you know value investor who's

01:29

all about by low then sell when fairly price that's

01:32

like benji graham Look him up it's not a sexy

01:34

but you can make big bank in value Land just

01:37

asked that one billionaire who loves all you can eat 00:01:40.498 --> [endTime] restaurants Yeah what's his name again

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