- It's cheaper to be a value investor. Because you're always looking to guy great stock at discount prices, you always pay less for what an asset is worth
- Stock market price swings do not affect you. Unlike stock speculators who bet on whether a stock's price will rise or fall (with usually disastrous consequences), value investors on the other hand remain calm and simply pick more stock of great companies when prices fall :)
- You have lower risk and HIGHER returns. The lower the price you pay for for a stock, the lower your risk because the most you will lose is the price you pay for a stock.
At the same time, the lower the price you pay for for a stock, the higher the potential returns because there is more upside for a stock's price to rise. Value investing is probably the only form of investing that gives you this advantage!
- These people are all BILLIONAIRES because of value investing:
Warren Buffett - US$44 billion
Richard Chandler - US$4.6 billion
Howard Marks - US$1.5 billion
Charles Brandes - US$1.5 billion
Michael F. Price - US$1.4 billion
Kenneth Fisher - US$1.4 billion
Charlie Munger - US$1 billion
Mario Gabelli - US$1 billion