Value investing dates back to the work of Benjamin Graham published in mid-1930s. Graham taught an investment course at Colombia University where he trained many famous investors, including Warren Buffett. Indeed, Buffett took a position in Graham’s funds management firm before moving on to establish one of his own.

Value investing involves a seemingly simple strategy of purchasing stocks that are cheap and avoiding or short selling those that are expensive. The style proved to be a successful investment strategy for almost a centur...