Value trap
Fundamental analysisA stock that appears cheap on conventional metrics but whose business is permanently deteriorating.
In plain terms
It stays cheap and gets cheaper. Cheapness alone is never a thesis.
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Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Value investing
Fundamental analysisA philosophy that buys what the market has over-punished, betting that the pessimism is excessive and will revert.
In plain terms
It requires owning things other people find embarrassing, sometimes for years with no signal that the wait is ending. Its failure mode is the value trap — cheap because it deserves to be.