warren buffett: Warren Buffett’s value investing strategy: How to build long-term wealth
Warren Buffett, one of the most renowned value investors, has amassed a fortune of around $150 billion by identifying and investing in undervalued stocks. His success is largely attributed to the principles of value investing, a strategy that focuses on buying stocks below their true worth.
What is value investing?
Value investing involves selecting stocks that are trading at a price lower than their intrinsic value.
According to investor Guy Spier, these stocks are often identified using financial metrics such as the price-to-book (P/B) ratio and the price-to-earnings (P/E) ratio. A P/B ratio below 1 may indicate that a stock is undervalued, while a low P/E ratio suggests it is priced lower relative to its earnings potential.
