Value Investing

I’m learning to how to invest from my partner. They call it “value investing.” “Value investing” is an investment strategy. It involves buying stocks that are trading for a price that appears to be less than their intrinsic value. Therefore, investing when the market is low is a big part of it. A value investor then hold their stocks, or ETFs or whatever, for a long time.

I know it’s risky to trust the advice of someone who’s not a financial advisor. Trusting someone who is not a financial advisor can be catastrophic to your portfolio. For example, my dad told me when the markets crashed in 2008, my mom panicked and wanted to sell everything. If they had done that, they would have lost all of their savings. Lucky for them, my dad did not panic. So, they agreed to hold onto everything, and the market recovered and has even seen gains.

Now, I just bought about 3 shares of VIG, which is Vanguard Dividend Appreciation Index Fund ETF Shares. I’m thinking that I should buy more, but my partner told me to only buy some. My partner has been value investing for years, while I am fairly new at it. My partner is not a financial expert, but they have multiple college degrees and years of investing experience. So, I trust them.