Value investing involves picking stocks that are:

Value investing is fundamentally about identifying stocks that are undervalued in the market, meaning they are trading for less than their intrinsic or book value. This strategy operates on the premise that these stocks will eventually be recognized by the market as being worth more than their current trading price, leading to a potential for profit.

Intrinsic value refers to the perceived or calculated value of a company based on fundamental analysis, which includes evaluating its financial health, earnings potential, and overall market conditions. By focusing on stocks that are undervalued, value investors aim to capitalize on the discrepancy between the market price and the fundamental value.

This strategy differs from other approaches, such as growth investing, which focuses on companies expected to have above-average earnings growth. While growth investors might seek out companies with strong future prospects regardless of current valuation, value investors prioritize price relative to value, betting that the market will correct itself in time, leading to gains as the stock reaches its true value.

The other choices do not align with the core principles of value investing, making them less relevant in this context. They either emphasize aspects of investing that are not central to the value investing philosophy or pertain to risk profiles that do not typically define a value investing approach.