Most of the people count investment as a secondary option to generate money. People are being too busy with the job and when they need extra money, they plan to make some investments. But, the investment can be your major income source if you work on it a little. From that point of view, there comes the point of understanding the value investment. Here the detailed discussion is continuing in this regard:
The term Value Investing:
By the word value investment, an investment archetype is being resembles. This concept had been invented by Ben Graham and David Dodd. They had begun their career as teacher in Columbia Business School. After 1934, they got busy with their text “Security Analysis”.
The value investing had faced a lot of shifts in its design and probably that is not the same thing today like way Graham and Dodd invented it. Nevertheless, this concept promotes an idea where people purchase security for them which are being measured by money. To understand the value investment in the best way, stock investment turns out to be the biggest example. In fact, people invest money here to buy a share of a company. And once the company generates money, the shareholder gets the percentage in accordance with the investment.
So, such investment has got tangible values. At the same time, this is a security which can come for work in the future. Also, apart from being involved in a job, a person can generate money with this investment. Eventually, this can become the major source of income. Certainly, this resembles a good investment value indeed as there remains no fraud earning in such investments.
The value investment procedure is certainly and undoubtedly a good investment value. Still, this had got criticized by the experts named Berkshire Hathaway and Warren Buffet. They basically argued that the way the value investment is assuming as security is less valuable than that of the intrinsic value of this investment. They tried to prove that the money could have been more powerful than letting it wait for the essence of value investment.
On the other hand, Ben Graham called this intrinsic value as the margin of safety. He counted is as a value which would expand in the future and will be distributed to all.
Still, today, in matters of understanding the value investment, we assume the share market. Many people are making investment in the stock market to the companies. By being the shareholders, they are generating a lot of money. Certainly, today’s share market is not the value investment which had been invented by Graham and Dodd. But, it had been successful in establishing their aim which was to keep a security for people.
Certainly, while understanding the value investingtoday, we understand keeping a security in the stock market through investment. Various shifts and changes have taken place in value investment. From the journey through value investment to ForEx Trading, a lot of shifts took place. But, somehow, the aim remained the same!
Understanding Value Investing