Benjamin Graham, the “father” of value investing and one of the best investors of all time once said,

“In the short run, the market is a voting machine but in the long run, it is a weighing machine.”

Cheem right? What did he really mean?

Well… allow me to introduce you to the concept of Value Investing. And perhaps after reading this, you’ll be able to figure it out.

What is Value Investing?

Firstly, there are two types of investors:

Short-term Investors, and Long-term Investors

Short-term Investors buy and sell their stocks in a short time period – which is anytime from a day to a couple of years.

Long-term Investors, on the other hand, are those who buy and hold their stocks until they appreciate in value. And this practice usually involves a longer time horizon.

Secondly, some people prefer investing in bigger blue-chip stocks, which