Warren Buffett, known as the Oracle of Omaha, is famous for spotting great investment opportunities. His key advice is to focus on buying undervalued shares, especially those trading below their intrinsic worth.
Buffett’s approach centers on value investing—identifying stocks that the market has temporarily undervalued but have strong fundamentals. This strategy applies to the Australian Securities Exchange (ASX) shares as well. By purchasing undervalued stocks, investors can potentially achieve better returns when the market corrects the prices upward.
"Price is what you pay. Value is what you get," Buffett famously said, emphasizing the importance of investing based on value rather than price fluctuations.
This approach aligns with Buffett’s long-term investment philosophy, prioritizing quality companies bought at reasonable prices rather than speculative highs.
Warren Buffett’s value investing principles offer a reliable framework for selecting undervalued ASX shares that may yield strong growth over time.