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The Key Differences Between Value Investors And Just Another Investor

An investor is one who, regardless of the money he has available, can choose promising assets wisely and, little by little, grow his wealth. Thanks to the digital tools offered by platforms such as eToro, it is possible that anyone can have the stock market among their options. However, not everyone knows how to be a Value Investor. These individuals have a series of very special characteristics:

You are an investor who buys businesses, not stocks

A Value Investor knows that a stock, by itself, is not the objective of its strategy; you know that titles are only tools to own a portion of the most promising companies on the market. Under that idea is how it builds its strategies.

Base your decisions on research

A novice investor runs the risk of falling into currents of speculation when making portfolio decisions. A Value Investor spends time observing and analyzing the market, trends, and brand decisions. In this way, you maximize your opportunities.

Has a long-term investment mindset

While there are many talented specialists in the stock market who focus on the short term, the most notable Value Investors are focused on the future. Thus, their portfolios have a higher risk, but also a higher probability of growth.

It is a good risk manager

Value Investors know that the stock market does not offer fixed returns and that no stocks have guaranteed returns. In that sense, when you buy stocks, you look for the most appropriate opportunities to maximize the performance of your portfolio and at the same time minimize risk.

Can interpret volatility

A novice investor, seeing the value of his shares collapse, can sell them without a second thought. A Value Investor, if he believes that the company has an inherent value that has not changed, he does not get carried away by trends. On the contrary, you will make the best decision for the future.

Thanks to platforms like eToro, a novice investor can not only view a Value Investor’s portfolio, he can also learn from his strategies in the long term and, if he wishes, even copy his investment decisions. Thus, those who are just learning about the stock market can look for potential returns, in which they learn the best practices to make their own decisions and thus perhaps become a Value Investor in the future.

Find a Value Investor to learn from

eToro is a regulated entity, in Europe by the Cyprus Securities and Exchange Commission and in the UK by the FCA. It is also registered with the CNMV within the Investment Services Companies section of the European Economic Area in Free Service. It also has the Australian ASIC regulation. CopyPortfoliosTM is an investment management service provided by eToro Europe Ltd., which is authorized and regulated by the Cyprus Securities and Exchange Commission. Your capital is at risk. CopyPortfoliosTM: are a portfolio management product. CopyPortfoliosTM: should not be considered as an investment fund on the stock market, nor as a hedge fund. This content is for informational and outreach purposes only and should not be considered as investment advice or recommendation. Past performance is not an indication of future performance.