Value Investing is a time tested investment strategy that works in most market environments.

Value investing is finding a good quality stock that you are proud to own for an inexpensive or bargain price.

Basically, a value stock has a low price to book value and a low price to earnings ratio. In determining whether a stock is inexpensive or not, one needs to analyze the company’s book value, also known as shareholders’ equity. You need to determine what the true net worth of a company is by calculating a tangible book value.

It’s critical to pick a company with an excellent management team.

http://myinvestingnotes.blogspot.com/2010/07/characteristics-of-value-stocks_23.html