The primary characteristic of a value investor is that he/she loves finding good deals. It might be best to think of them as shoppers who scour through the Sunday newspaper for coupons. This is exactly what they do, but instead of looking through the paper for good deals, they look through the universe of businesses. Value Investors are extremely unwilling to be part of the "herd" mentality, and so may often receive great criticism from market "pundits" for their investment decisions.
A value investor is only willing to buy a company when it's down and out, provided the price is right. At any point in time, there are dozens of companies whose share prices are depressed. There are many reasons for this to happen, such as disappointing quarterly results, unexpected charges, changes in leadership, boring products, etc. A value investor will weigh the drop in price with the news that caused it. If it appears to the investor that the market overreacted (as it almost always does), then he or she might pick up some of the shares at a discount and wait it out.
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