Value investing

Value investing is an investment approach developed by Benjamin Graham and David Dodd and presented in their book, Security Analysis. Graham later wrote The Intelligent Investor, which is a more readable treatment. Value investing involves buying stocks at undervalued price based on some fundamental measure such as high dividend yield, low price-to-book value, or low price-earnings ratio.

Well known value investors include, among others, Warren Buffett, Peter Cundill and Sir John Templeton.