Price is what you pay, value is what you get, said Warren Buffett. A simple definition of value investing would be to buy companies at a price that is available at a discount to its intrinsic value or fair value. But in today’s market environment the term value investing is often used loosely to mean many things. We look at value investing as the conjunction of a series of processes that can lead to super normal returns and enormous wealth creation over the years. Here are a few aspects one needs to be mindful of while looking for value:
