One of the long-term strategies to owning a percentage of a company is value investing. In this video, you'll learn a simple way to understand this concept through an easy and brief explanation. The definition is a strategy that picks stocks that appear to be trading for less than their intrinsic or book value. By knowing the true value of an underestimated stock, you know when to buy. Under the belief that the market overreacts to good and bad news, investors can find opportunities.