So how is value investing different from other investing?

So how is value investing different from other investing?

I think the distinction lies in your objective. Where others might select investments to achieve growth, or income, or political correctness, or stability, balance etc, etc, the "value investor" looks for stocks that have a special feature that translates into "objective" (meaning quantitatively measurable & predictable) financial results in Sales, Expenses, Profits, Cash flow, etc.

The value investor does more research into the target company and understands the target in depth. The value investor is a fundamental analyst. He does not base decisions on trends of the past, ie he is not a technical analyst.

The distinction also lies in how you select your investments. Buffet and Graham define the term "intrinsic value" which is the present value of future cash generated by the business. If the investor does the research and the math needed to calculate intrinsic value, then the investment's value is the difference of intrinsic value per share less market price per share and less asafety margin, or moat which means an allowance for error and lack of perfect knowledge about the company.

And the distinction also lies in the time horizon of the investor. Value Investors tend to be holders rather than in and out traders. Value investors tend to take more time in to analyze and selet their investments. They are not in the game for the quick score, but for a long term winning record covering decades or forever.

http://myinvestingnotes.blogspot.com/2010/10/mark-perkins-on-mon-2007-03-12-0003.html