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Finance: What is a value investor? 1 Views
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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
Full Transcript
- 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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