This irrationality, in theory, presents prospects to get a stock at a discounted price and make money from it.
Value investors are your bargain shoppers of the investing world. They look for stocks with prices they believe don’t reflect the security's intrinsic value. Value investing is premised, in part, on the idea that some degree of irrationality exists in the market. This irrationality, in theory, presents prospects to get a stock at a discounted price and make money from it.