The advantages of value investing

Value investing – buying cheap shares, or shares that trade at less than their intrinsic value – works. So why doesn’t everyone do it? It comes down to the way people’s minds work.

Lots of people want to buy and own the shares of great businesses. That’s understandable. The trouble is, great businesses are often bad investments. That’s because people know how good they are and so push the price of their shares up accordingly. Buyers then pay too much for them and get disappointing returns.

That’s why value investors often have better results. By buying shares that are temporarily [...]

MoneyWeek magazine

Latest issue:

Magazine cover
The future of motoring

Profit as cars get connected

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

What you should really do with your money (2014 Edition)

How to buy and sell penny shares

A beginner's guide to investing in gold

How to invest in British fracking