Value investors rarely follow the crowd. In fact, we tend to invest against the market, which is why we are sometimes referred to as contrarian investors. Value investors are big picture investors that are not bothered by short term price movements. We understand that when we focus on our investment process, results will come – over time.
“Never invest in something that you don’t understand”
Through Value Investing, we know the difference between share price and intrinsic value of a company. We understand that investing is less about the stock price and more about the value of the business.
Like how Warren Buffett puts it, it's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.
“Price is what you pay.
Value is what you get”
We only invest in companies where we understand the business models and know that the companies have favourable long term prospects. Investing with this long term view gives us a much better balance to our psyche, allowing us to invest with a peace of mind.