Value investing, defined as buying or selling securities at prices different than their true value, is alive and well. You might not know that by reading headlines in the financial press or witnessing the poor returns of stocks with low multiples of price to earnings or book value per share. But here’s why you don’t need to fret about value investing. Benjamin Graham was a professor and investor who is widely acknowledged as the father of value investing. The Intelligent Investor, arguably Graham’s best-known book, tells the story of Mr Market, a metaphorical way to explain why prices diverge from values. 

1. Explain why Fama and French argued the case for a multi-factor model that included size and value when trying to price capital assets.

2. Why is buying shares with low valuation multiples and selling those with high multiples not the same thing as ‘value investing’?