You may be wondering what's with all this talk about value investing that many investors claim to be doing these days. This blog post is going to try and help you understand what is value investing and why you should practice it, as well as some examples that are not value investing. This sums up the difference between value and price and its importance (Image source: http://blog.wallstreetsurvivor.com/2013/08/29/the-basics-of-value-investing/) What is value investing? It is the strategy of picking stocks which are selling below their intrinsic value. To find out more on how to find the intrinsic value of a stock, look at a blog post done on the Dividend Discount Model and Discounted Cash Flow Model. In addition to the dividend discount model and the discounted cash flow model introduced in that segment, there is also another way of valuing companies using comparables, which include P/E ratios, P/B ratio and ......