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RE: My Entry for Adopt A Minnow Project
This is a very good simple explanation of value investing... But the explanation here is about stocks... Value investing covers stocks and businesses / companies too... For example, Warren Buffet is known to be a value investor in both stocks and whole companies.
Thank you for the link. O.k, so stocks and businesses are bought when they are undervalued by the market, but there is potential that these stocks or businesses will grow and make a profit. Is this correct?
That's correct. But those businesses or stocks might already be making profit / dividends but they are undervalued in their "Price", not necessarily in their "Profits" - (Although the profits they generate might be descent, but still undervalued).
Got it! Thanks @nuridin. Peace.
You're welcome warrior :)