The Value Misconception.

Many individuals classify their investing style as being in the value category. Stocks that are out of favour or stocks that show low price multiples are always enticing to these value investors. After all, why pay full price for something when you can get it at a discount? The whole notion of buying companies with a history of profits, dividends and strong balance sheets is a great strategy and makes intuitive sense. Unfortunately, the same factors that intrigue value investors can often be taken out of context or have their significance exaggerated which leads to the purchase of securities that may not be           a value investment at all.

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