In all proper training, we always start with the basics and get it right. In fact, mastering basics is the essential in any skills acquisition. So what is value investing and what are the things we need to know about it?

What is Value Investing?
The term ‘Value Investing’ consists of 2 root words, ‘Invest’ and ‘Value’.

Let us look into what is means to be Investing
“An investment is a choice by an individual or an organization such as a pension fund, after at least some careful analysis or thought, to place or lend money in a vehicle (e.g. property, stock securities, bonds) that has sufficiently low risk and provides the possibility of generating returns over a period of time.”
In our own words, it is making your money work for you.
In order to make money, you have only 3 choices:
1.    You exchange your services and time for money. (work/ employed)
2.    You create a business that work. (business/ entrepreneur)
3.    You Invest into Businesses that work. (investor)
In the case of Value Investing, we are looking at investing into businesses that work for us.

Now we move on to the next term, ‘Value’.

Many people jump into investing without looking at whether or not the price they are paying is of a great bargain. We can invest into good businesses, but if we do that at a lousy price, the chances are that we are not going to make much. In many cases, purchasing good businesses that are too highly price will cause investors to lose money.

So when we include the term ‘Value’ into investing, we are looking at buying good businesses at a good price. Obviously, when we talk about buying businesses in this course, we are talking about buying the shares of these listed companies rather than buying an entire small business.

The 2 Steps to Being a Value Investor

We have discussed what Value Investing is. From the discussion, we have identified 2 steps necessary to becoming a Value Investor:
Step 1: Identify Good Businesses
Step 2: Purchase them when the price offered is of “Value”

Sounds simple? Within these 2 major steps entails many minor steps. And it is not difficult once you are trained. And in this course, we are going to train you to become a sharp and ready investor. You are going to acquire the skills and have a plan by the end of the course.

In the next session, you will learn how to identify a good business.
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