An investing methodology or strategy that involves purchasing a company’s stocks at a deep discount against the value of its assets. In other words, deep-value investors seek to buy the stock of a company for a price lower than the assessed value of its assets. In the meantime, the investors wait for the price and value to converge, in order to realize the real value  of the assets over time.

For such a purchase to take place, deep-value investors define a minimum difference (margin of safety) between the price and value. Over time, the price-value difference may narrow, allowing investors to make their gains from selling their stock holdings at a higher price. The best case scenario would be a zero gap between price and value. Better yet, if price picks up beyond value, for one reason or another, the investors may realize more gains for the sale of stock.