Value investing is great for investors that have the patience to wait for their investments to grow and the self-confidence to believe in their stock analysis. Value investing has lower volatility than trading and is also less stressful.

Value investing is a strategy that looks to determine if the market has undervalued a stock, and there are many metrics that can help you discover these opportunities. There are two key categories of metrics that are used in value investing.

On a typical trading day, value investors should own 30 to 50 stocks if the market is not overheated or undervalued. However, value investors never have a quota on the number of stocks they must own.

Value investing and growth investing both look at the company fundamentals to determine if the company should be bought. This is in contrast with momentum investing and technical analysis, which are indifferent to the underlying asset.

The greatest value investors used to scan the morning newspaper for interesting stocks to do more research on. Nowadays, value investors have a multitude of websites, videos, and groups they can rely on for new potential stocks to buy at a bargain.

To value a stock, you need to evaluate a company's growth potential, calculate their intrinsic value, and determine an acceptable risk factor.

Why are utility stocks not part of the energy sector? The reasons go beyond their business types and explores what an investment in utilities and energy means.