It goes back to the definition of value investing, right?

I want to figure out what I think in asset is worth and then buy it for less than that amount.

And that is your margin of safety, the difference between your estimate of intrinsic value and

the amount that you're paying for a company.

And ideally, you want that margin of safety to be as wide as possible.

And that protects you on your downside, in case your investment thesis doesn't pan out

the way you expect.

And it gives you a little boost to your upside potential if things do go as you expect.

I'm Dylan Lewis and that's Motley Fool's Senior Analyst Rich Griefner.

He joined Ricky Mulvey to talk about the fundamentals of value investing.

In this episode, they break down if we should even draw a line between growth and value

investing, how to look for mispricings in the market, and a couple stinky feet stocks

that might be worth your attention.

This is a simple question, but possibly difficult to answer, Rich.

What does it mean to be a value investor?

Yeah, the term value investor means different things to different people.

I think to many people, it conjures up the image of the shabbly dressed guy scouring the street,

searching for discarded cigar butts in hopes of getting one last puff of value for free.

It's not an image that's really resonated with me, that's not a style of investing, that

has worked well for me historically.

I much prefer Joel Greenblatt's definition of value investing.

That is, I'm trying to figure out what an asset is worth and then buy that asset for much

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