What is "Value Investing"

Value Investing : This is a investment philosophy , conceptualized by Benjamin Graham in 1949 in his book "Intelligent investor" . Benjamin Graham is known as the greatest investment guru of 20th century - mentor to legendary Warren Buffet. Its an investing style which demands investing in assets/stocks available at a price which offers substantial discount or "margin of safety"with respect to intrinsic value.

Margin of safety: This concept has been considered as key cornerstone of value investing by big investors like Graham and Buffet. Margin of safety is the difference between market price and intrinsic value of the asset. The return on investment is directly linked to the margin of safety you deploy.

Intrinsic Value: The actual or true value of a security or asset ,which  may not be equal to its market price or book value.  It is ordinarily calculated by summing the future income/cash flows generated by the asset, and discounting it to the present value.

" Price is what you pay and value is what you get" -  Warren Buffet

Value Investing Rule No.1 : Never loose your capital . Always preserve it.
                        Rule No.2 : Never forget Rule No.1
                        - Warren Buffet