Many investors have a gross misconception of value investing, that it is only applicable to buying shares of companies trading below their net asset value, or at a ridiculously low multiple of earnings. However, this method's real success lies in purchasing stakes in companies that that are capable of unlocking their actual intrinsic value.
Figuratively speaking, some well-run companies virtually have the license to print more and more money, year after year. Yet their corresponding growth in cash flows, at various times, do not reflect in their stock prices. But eventually the market catches the hint and wakes up to these businesses.
In fact, three such value stocks in this category have returned between 21% to 2,930% in the past three months alone: Ocugen (NASDAQ: OCGN), Social Capital Hedosophia Holdings V (NYSE: IPOE), and Nano-Dimension (NASDAQ: NNDM). That's far better than the S&P 500's meager 6% return during the same period. Just how much value is stored in these companies?
Source Fool.com