Value investors do not guess when the market or a stock is at its peak, trough, or specific points in between.
There will nearly always be times when some positions are priced attractively compared to value and others when the opposite is the case.
During periods characterized by bullishness, as the late 1990s, there are fewer value opportunities; during bearish times, as in the early and mid-2000s, there are more.
The universe of prospects enlarges as markets fall and contracts as they rise.
Tendencies in either direction reinforce themselves, as pessimism or optimism spreads.
This requires knowledge of business, accounting, and valuation principles.
Also read: 10 TENETS OF VALUE INVESTING
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