How to avoid value traps

How to avoid value traps

Investors are often advised to follow a 'value investing' strategy. Buy value shares because it delivers better returns over time than growth shares. I've always found this mantra somewhat strange; we are all trying to buy shares for less than they are worth. However, when it comes to being a successful value investor it seems that some people struggle to tell the difference between value and cheap. They rarely equate to the same thing.

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