Value Investing

An investment philosophy focused on buying securities trading below their intrinsic value, pioneered by Benjamin Graham and David Dodd in their 1934 classic "Security Analysis." The idea is to find a "margin of safety" -- paying significantly less than what a business is actually worth -- and waiting for the market to close the gap. Warren Buffett, Graham's most famous student, refined the approach to favor wonderful businesses at fair prices over mediocre businesses at bargain prices.