Today, we’re diving into the key insights from the research paper "Value Investing, A Modern Approach."

🔹 Value investing is about finding undervalued companies — stocks that the market has mispriced — and buying them with the belief that their true value will eventually be recognized.
The foundation of this strategy is the concept of intrinsic value — the real worth of a company beyond its current market price.

🔹 Key Strategy:
When choosing between two similar companies, value investors prefer the one trading at a lower price, aiming for a bargain and a margin of safety.
Patience and a long-term perspective are crucial.

📚 Case Study Analysis:

The paper analyzed Microsoft and Apple (tech giants), and Pfizer and Merck (pharma leaders) over four years (2019–2022).

• Microsoft & Apple had higher earnings and revenue but slower percentage growth — because they were already huge companies.

• Pfizer & Merck, starting smaller, showed faster percentage growth. Pfizer especially surged in revenue during the pandemic due to vaccine development.

Key takeaway:
Smaller, strong companies might offer higher growth potential when bought at the right time.

🎯 Practical Strategies for Traders:

• Look for undervalued businesses with strong fundamentals.

• Focus on long-term growth, not short-term hype.

• Companies with a smaller revenue base can sometimes grow faster.

• Compare similar companies and pick the better-priced option.

• Stay flexible — value investing must adapt to changes in markets and regulations.