Warren Buffett is an advocate of which of the following investment strategies?

• A. Momentum investing
• B. Speculative investing
• C. Value investing
• D. Day trading

Answer: (C)

Verified step by step guidance

1. Understand the key investment strategies mentioned: Momentum investing involves buying stocks that have had high returns recently, Speculative investing focuses on high-risk, high-reward opportunities, Value investing seeks undervalued stocks based on fundamental analysis, and Day trading involves buying and selling stocks within the same trading day.
2. Recall Warren Buffett's well-known investment philosophy, which emphasizes buying stocks that are undervalued relative to their intrinsic value and holding them for the long term.
3. Recognize that Warren Buffett is famously associated with Value investing, which involves analyzing a company's fundamentals to find stocks priced below their true worth.
4. Eliminate other options by matching their definitions with Buffett's approach: Momentum investing and Day trading are more short-term and speculative, which contrasts with Buffett's long-term, fundamental focus.
5. Conclude that the correct investment strategy advocated by Warren Buffett is Value investing.