Value investing is one of the most popular investment strategies of all time. Many of the most successful investors, such as Benjamin Graham and Warren Buffett, are value investors.
Unlike growth investing, which is a strategy directed at paying a higher premium now for growth in the future, value investing addresses inefficiencies in the stock market. It allows investors to buy stocks at a discount to their “intrinsic value,” which is related to the future cash flow the investment is expected to produce.
As mentioned, this is different than a growth stock and growth companies in general, as investors are generally speculating on future profitability that has not come to fruition. Many popular stocks like Amazon, Tesla, Alphabet, and Apple are growth stocks, even with Apple paying dividends.
I won’t get into the intricacies of discounted cash flow analysis. However, this article will identify some of the most promising Canadian value…
