This principle of "Value Investing" is held in high regard by a lot of prestigious investment circles (or at least so I've heard), including the likes of Warren Buffett, and other stupidly rich people. I wanna be like him!
The emphasis (or at least that i can follow) that is placed on fundamental analysis seems logical to my untrained mind, given that the analysis of a business as an entity and its performance is highly measurable, and the data itself that you are measuring are strict results, not interefered with by human emotion. Share prices however, are purely determined by human emotion, and can't be in any way reflective of the true value of the business (and it is therefore useless to analyse it). I believe this is something a long the lines of the "Value Investing" philosophy.
First of all, have i got this correct, and is this reasoning true/useful? Does it have much of a following on this forum?
Any comment/opinion would be great.