Here’s a great article from Morningstar which discusses the importance of patience as a value investor. One of the key takeaways is:
“However, by anchoring investment decisions to value, we can navigate challenging circumstances and look through market noise and emotion to identify and take advantage of opportunities that may present in times of market stress. This often sees our views as contrarian to others in the market.”
Here’s an excerpt from the article:
It is difficult to know how long it will take for an attractively priced asset to appreciate towards its fair value, long-term investors must be prepared to wait.
Value investing has a prominent place in our investment process and is backed up by a vast body of empirical evidence that supports this approach to investing.
Perhaps it can be best described through illustration in the diagram below: