Will the value investing strategy be completely safe in times of market crashes?

There is no risk-free strategy to invest in the stock market. Value investing limits downside risk by investing in undervalued, fundamentally strong companies, although there will still be some risks associated with market crashes.

How does the margin of safety cushion investors' portfolios during a market crash?

The margin of safety involves buying stocks at very low prices that are below the true value, and this provides a cushion to counter further price decline and valuation mistakes.

What are the risk management strategies during market crashes?

These measures include diversifying holdings in various industries, avoiding taking leverage, keeping emergency funds, investing in stocks that have strong fundamentals, and periodically reviewing holdings.

Should the value strategy continue to be used in response to a market crash?

Yes. Making regular investments in times of market crash using SIPs will average the purchasing cost and help in capitalising on opportunities during market recovery.

Can value investing lead to losses during prolonged downturns?

Yes, especially when stocks are value traps whose fundamentals are declining or when investors require urgent liquidity during market crashes, leading to forced selling.