Why Value Investing Works Frequently the stock market overreacts to bad or good news, resulting in either the undervaluing or overvaluing of a company’s shares. A value investor takes advantage of this situation and profits from buying a stock when its price is significantly deflated. In fact, two of the most influential proponents of this method are Warren Buffett (the richest value investor still living today) and Dr Tan Chong Koay (the most experienced Malaysia fund manager). Warren Buffett b