Value Investing

Written by Jessica Duquette
Bookmark and Share

You love the adrenaline rush from trading on the New York Stock Exchange. What you don't love is the high element of risk involved. No problem, you can have the best of both worlds with value investing.

Whether you're advised by a professional or simply doing your own research on the Web, value investing should be part of your portfolio. Even though you're taking a risk by investing in stocks, you can still have some sense of comfort in knowing your money was wisely invested.

Past Performance

Value investing is evaluating existing stocks and their past performances. By choosing a stock that has been around a while you can see how they have survived on the market and what the return has been for previous investors. Once you've selected a stock you feel comfortable with you can then more aptly devote your hard earned money.

Since value investing is based on more stable stocks, financial advisors can tell you if the price you are about to pay is under or above the average selling price. This way, not only are you investing your money is a stock that is likely to hang around for a while, but you also know if the price tag is right. These investments are a safe and wise decision for any frugal investor.


Bookmark and Share