When you are a Value Investor, it means you believe in buying something for less than it is worth.
I must warn you, when you become a value investor, you become an "old-fashioned" being, a financial market misfit . With so many new technologies that have emerged, such as the hyper trader , swing trader, robot trading , it is difficult to support their arguments created in the 1930s by Benjamin Graham, T. Rowe Price and company. You start to wonder if you're a dinosaur living in the 21st century.
Why is Value Investing out of favor?
There are two essential aspects that explain it, the first of which is that if you believe that the market is not efficient , it will contradict the most recent and accepted theories of the Chicago school coming from Dr. Eugene Fama. Therefore, you believe that you can find one or another bargain, buying cheap and selling expensive , which can be seen as a thing of the past. The second and most important one is that you can find something cheap and it takes years for the market to also see what you saw and for you to declare yourself the winner. A path that can cause suffering, especially when investments that make no sense at all are making money while you look like an idiot and wonder about the chances of you being wrong.
But after all,
What attracts me to Value Investing?
The good news is that, when we look at the most successful names in the investment world, they largely come from the Value Investing school. The most notable of them are Mr. Charlie Munger and Warren Buffett , owners of a unique philosophy based on, let's say, orthodox concepts, which have proven to have made them one of the richest men of this century. When I stop and think that these two gentlemen are over 90 years old, and continue to work with curiosity and excitement, without forgetting to eat their McDonald's and drink their Coca-Cola. I realize that maybe this is a lifestyle I want to lead, stubbornly tied to my values, and serving others until the end without cutting out the carbohydrates that fuel the joy of living.