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A fundamental approach to share assessment which involves identifying shares which are undervalued in terms of their future profit and dividend potential. This approach is not as simple as comparing the company's net asset value (NAV) with its current share price. The true value of a share is in its earnings potential and to assess that a much more in-depth study must be undertaken. The quality of management is a key focus, but also the industry which it is in and whether it is in a "gate keeper" business. Warren Buffett learned the concept of value investing from Professor Benjamin Graham's book "Security Analysis" published in 1934. Buffett has applied the approach throughout his long and extremely successful investment career. He studies as many as 2000 sets of company results each year and from this he finds companies which he believes the market has under-valued. Immediately after a crisis (such as COVID-19) or major bear trend (like the 2008 sub-prime crisis) there are always high-quality companies whose shares are under-valued. Buffett is fond of saying, "You must be greedy when others are fearful and fearful when others are greedy".

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