The value investor focuses on share price in anticipation of a market correction and, possibly, improving company fundamentals.

Question

Quizplus · Accepted Answer

The statement accurately describes the core investment philosophy of a value investor. They seek to purchase stocks that are undervalued by the market in the expectation that the market will eventually recognize the company's true worth and share price will increase. Additionally, value investors often investigate company fundamentals such as earnings, assets, and debt to further confirm whether the company is a good investment opportunity.

The Value Investor Focuses on Share Price in Anticipation of a Market