Value investing involves buying or investing in discounted stocks or assets. Due to the relatively low cost of the assets, the investor wants to maximize the likelihood of a return.

Additionally, value investing avoids purchasing products that are perceived as being overpriced in the marketplace for fear of receiving a negative return.

Value investing is an investment strategy that involves identifying undervalued assets—stocks, bonds, or other securities trading below their intrinsic value. Investors using this approach analyse financial metrics such as price-to-earnings (P/E) ratios, book value, and cash flow to find opportunities where the market has underestimated a company's true worth. Pioneered by Benjamin Graham and popularised by Warren Buffett, value investing focuses on long-term growth rather than short-term market trends. By purchasing undervalued assets, investors aim to profit when the market corrects its pricing, leading to capital appreciation. This strategy requires patience, discipline, and thorough research to avoid value traps, stocks that appear cheap but are fundamentally weak. Value investing is ideal for risk-averse investors seeking steady returns over time.