The second type of investors are value investors. These people are bargain hunters. always searching for a good deal. If value investors were clothes shopping, you may find them at the secondhand shop discovering hidden gems.
When value investors hit the stock market, they will try to find stock they believe the market has undervalued. For example, if a company’s CEO has just been fired after a scandal, stocks may drop to an all-time low. However, a value investor could see these cheap shares as an opportunity to invest. Especially if the new CEO has a strong vision to earn back the trust of the public.
Tips and tricks
Value investing takes patience and a keen eye to find the bargains. So avoid the herd and search where others aren’t looking. You may surprise yourself!