Value stocks are those stocks that tend to be trading at a much lower price for the moment than their intrinsic price. So in the long term, these stocks are going to increase in value. Warren Buffet is a famous value investor who looks for value stocks that are trading much lower than their intrinsic value. There are many value investing courses that teach how to pick perfect value stocks. You can watch the video below that give 8 rules for picking perfect value stocks.
It was Ben Graham who first introduced the idea of value investing and value stocks in his famous book, “The Intelligent Investor”. Warren Buffet read this book in his early 20s and meticulously applied the idea of value stocks in his investing style. Value investing revolves around the idea of finding stocks that are being traded at a much lower price than their intrinsic price. Intrinsic price is the price determined by the fundamentals of the company. It is rather a subjective value. Two investors can come up with different intrinsic price. Warren Buffet has developed his own formula for calculating the intrinsic value of a stock that he uses to make his value investing decisions. He has not disclosed his formula publicly. You should also watch this video on deep value investing!