Did you know that stocks have many different types of values? 🤔
Stocks have a stock price, intrinsic value and potential future values 🤯
Only the stock price is set, but even that changes all the time 🏷️
Intrinsic value and the potential future value are subjective though 😥
So, some investors try to identify stocks that will be valuable in the future and worth more than their current price! 💡
To be exact, value stocks are stocks of companies that are trading at a lower price compared to their intrinsic value 📈
Investors who invest in value stocks are looking for companies that they believe are undervalued by the market 💰
Value stocks are usually from companies that have been in the market for a while and have a history of stable earnings 💪
Investing in value stocks requires patience and research as it may take time for the market to recognize the company's true value🔍
One advantage of investing in value stocks is that they can provide a margin of safety, as they are already trading below their intrinsic value 🛡️
Another advantage is that they may have lower volatility compared to growth stocks 📉
However, one downside of investing in value stocks is that they may not experience significant price appreciation in the short term 📉
In addition, there is no guarantee that the market will recognize their true value 💸
Even though finding value stocks can be hard, some of the most famous investors believe in value investing and value stocks 🚀