Some of the most successful stock investors have based their investing principals on value investing. Investors such as Warren Buffet, Benjamin Graham, and Irving Kahn have used value investing to build vast empires of wealth.
Value investing was conceived by Benjamin Graham and David Dodd, in their classic book, “Security Analysis”, written in 1934. Although they were talking about stocks, there is still a lot we can learn from value investing that can be applied to other vehicles such as investment real estate.
Keep in mind that the very definition of value investing is subjective. Some value investors only look at current returns and don't place any value on future growth. While other value investors base their strategies around the estimation of future growth and cash flows. Despite the differences, it all comes back to trying to buy something for less than it is worth.
Here are four things that real estate investors can learn from value investing: [Read more…]