The word ‘value’ is now so overused that it has almost become an example of the worst kind of corporatese language, especially the phrase ‘adding value’. This is unfortunate because this word has a precise meaning in investing. It has a history, a method, well-defined goals and a tremendous track record.
People’s instincts about what makes a purchase worthwhile has some harmful side effects when applied to investing. However, overcoming these instincts can be very profitable, which is what ‘value investing’ is.
