Some investors focus on the intrinsic value of a company rather than the movement of the company’s stock. For example, they look for stocks that are trading at a low P/E relative to their opinion about the true value of the company. Value investors are typically the first group of investors to buy a stock after it has declined. Value investors are the reason that a stock forms a base -- they are buying deep value from frustrated shareholders who want to sell the stock.

Strategy Session October 9th, 2013

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