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Sir John Templeton was an amazing investor and a great human being, so let's see what he can teach us.

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Apple inc. (AAPL) has seen its stock price fall more than 25% from its $700 September level. And although there are some reasons for this substantial drop, it seems like this is a typical case of a severe overreaction by our dear friend Mr. Market.

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That car you have been wanting to buy is lowered in price. Awesome! Now you can get the same value (the car) for less money. However, a stock price decline is often perceived as something negative, while the concept of getting the same value (a share of a company) for less money still applies. Let us go into this some more.

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You have heard the term value investing a couple of times, but what does it entail exactly? And does this strategy even work? These and more questions are answered in this introductory article into the mystical realm of value investing.

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