What is Deep Value Investing
The best form of investing is value investing. But there is one form of value investing that is even better, Deep Value Investing.
Nowadays people try to categorize stocks into value stocks $VTV and growth stocks $VUG . But I don't like these definitions. A value stock is one trading under its intrinsic value according to Benjamin Graham. Normally, calculate the intrinsic value based on discounted owner's earnings according to Warren Buffett $BRK.B
Every value investor takes a margin of safety before making an investment. Deep value investors go a step further. They will mostly base their investments on the balance sheet analysis rather than earnings. A deep value stock can be one trading under its tangible book value, cash value, or net current asset value. For example, when I was buying GameStop $GME in 2019, it was trading under its net cash value and the company was buying back shares.