7 tips for valuation-driven investing

How to overcome investor biases, impulses and overconfidence, and make wise investment choices

Morningstar, Inc. 26 October, 2018 | 5:00PM

Valuation-driven investing is about doing your homework, avoiding impulse decisions and knowing that the long game pays off.

At its core, it's a straightforward process: find the fair value of an investment, buy it if the price is sufficiently below that fair value. Then sell it when the price is significantly above the fair value of the investment.

As Warren Buffett, valuation-driven investor and founder of Berkshire Hathaway, once put it: "Investing is simple, but not easy."

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Morningstar, Inc.

Morningstar, Inc.