The concept of value investing and its idiosyncrasy principle is looked at the value instead of price. The best illustrate such principle is by the famous quote from warren buffet :" Price is what we pay, value is what we get". The value indicated on the theory is pointing toward the intrinsic and tangible value of a investment, generally the share of a public or private company. Benjamin Graham pointed out that, if should a rational investor buy a share of a company based on its intrinsic value, he or she are basically buying at the minimal risk - marginal safety. Such manner are buying at worst case scenario, should the company went broke, after liquidation of tangible assets, and pay off any attached debt obligations, investor are still be able to recover his or her initial investment money. Still such concept of investing had and still is prompt up many critics and controversy from many technical investors who does not share the same view; who believe in speculation, trend and ultimate earning can only come with fast capital gain of stock price.
Today, Value investing still preach by small group of true fundamental investors who are to be consider the more conservative kind. But, such practices are seem to be more difficult to maintain and keep, due to the volatility and speculation of today market behavior. Temptation of get rich fast scheme become prevalence. It is one of the reason that cause the many market bubble that eventually went to burst. Most of the investors who had read and comprehended on the subject, could not resist the temptation of market share price, and have forgotten what they been taught at the first place. If should the market can preach and walk the concept, million if not thousand of small investors will not fall pray in many of the market crash happened throughout our recent history.
* Also Tribute to David Dodd who equally important, along with Benjamin Graham in contribute to the idea of Value Investing
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