Stock selection is based primarily on external accounting data reported by the evaluated company and its competitors. The emphasis is on either value or growth, a significant difference. Whereas value investing is a method of appraisal that focuses on measures of intrinsic value, growth investing is a method of anticipation that focuses on forecasts of earnings growth for the sake of growth. T he materials presented here are designed to explain value investing in as little or as much depth as desired. Whether novices or adepts at investing, readers may either gloss over the surface or delve to the foundations of first principles and discover the traps and pitfalls that await the unwary.
Facts conquer fiction.
Dig deep for facts, dig deeper for value. Investors who choose a long time horizon for their investments and who heed investment value can be referred to as rational long-term investors. By pursing their individual investment goals, these persons indirectly contribute to societal well-being in all nations. Their investment decisions help to stabilize capital markets and increase their efficiency, thus raising global standards of living and thereby improving the quality of life for everyone, whether or not direct market participants. Ultimately, economic value is determined by human values, freely chosen by individuals in consensus.