Which statement describes value investing?
A) I want an attractive return over the long haul without having to constantly track my investments.
B) I want a steady flow of income, even though the value of the investments won't increase much.
C) I want to increase my wealth fast and am willing to take risks.
D) I'm willing to risk my time and money hunting for undervalued stocks that might become profitable.
E) I'm willing to take big risks and pay very close attention to buy low and sell high for quick profits.

Question

Quizplus · Accepted Answer

Value investing involves searching for stocks that are undervalued by the market, with the belief that their true value will be recognized eventually, leading to profits. This strategy requires patience and a willingness to invest in companies that may be overlooked or underestimated by others, without the necessity for rapid trading or speculation on quick gains.

Which Statement Describes Value Investing