# Value Investing

*Saving & Investing — Finicade finance glossary*

Value investing buys assets trading below an estimate of their intrinsic worth, on the premise that price and value diverge and eventually reconverge. Its founding discipline is the margin of safety: buy at enough of a discount that being somewhat wrong is survivable. The persistent risk is the value trap — a cheap company that deserves to be cheap because its business is in structural decline, where the discount never closes.

**Also known as:** value strategy, deep value, Graham and Dodd

**Related terms:** [Growth Investing](https://finicade.com/glossary/growth-investing), [Value Stock](https://finicade.com/glossary/value-stock), [P/E Ratio](https://finicade.com/glossary/p-e-ratio), [Book Value](https://finicade.com/glossary/book-value), [Growth Stock](https://finicade.com/glossary/growth-stock)

Source: https://finicade.com/glossary/value-investing