Value investing is an intellectually and emotionally demanding discipline where the latter may be arguably more important than the former. Hundreds of hedge funds helmed by the leaders of the industry fall prey to the inefficient market when the financial crisis hit. Cycles after cycles, we possess the wishful thinking that “this time it will be different, Company ABC is far greater than its peers and it would continue growing, justifying its high P/E ratio”. However, time and time again, only with the onset of a financial crisis, do we see that value prevails.

In this article, we will explore the two key characteristics every value investor ought to possess to survive and profit from the bleakest point of the financial crisis.

Humans are emotional creatures, we thrive on emotional satisfaction. We feel happy when we are praised