Value Investing, a Modern Approach

Abstract

This paper explores the principles and practice of value investing deeply, tracing its origins and analyzing its fundamental ideas. The basic principle of intrinsic value is examined, along with how it influences investment choices, emphasizing the reasons why it can have an effect when investigated and appraised. The limitations of value investment, such as long-term commitment, are also discussed in the article. It is determined that Microsoft, Apple, Pfizer, and Merck's long-term changes are related to the investment technique after integrating their yearly returns, total revenues, and earnings per share over the past four years. After calculating the growth rate of their total revenue and earnings per share, the changes of the four companies are more clearly seen in the chart. It is found that the returns of value investing correspond to the events experienced by the four companies, proving once and for all the usefulness of value investing. Finally, the article considers how value investing, a well-known and established financial technique, may help investors meet their objectives and generate profits.