What is a value investor.

[Wildreamz]

So value investing is as simple as that? If a stock's fair value is $1, I buy it at 99c, I can also be considered a value investor, maybe not a Sh** hot value investor correct? Which leads to my other question, what are the other x-factors which make me a sophistictaed value investor?

Off the top of my head, characteristics of a good value investor:

1) Has the valuation skill to gauge the intrinsic value of the security he is buying into. This includes the understanding of the concept of Discounted Cash Flow, what constitutes business with strong economic characteristics etc.

2) Understands that "intrinsic value" is hard to quantify, hence he will always buy with a sensible "margin of safety" (depends on individual risk appetite, usually more than 30% discount) from the estimated "true value", to protect himself from permanent loss of capital.

3) Resourceful and always on the look out of the best bargain in the market.