Investment philosophy refers to the set of beliefs and principles that guide an investor's decisions in the financial markets. It encompasses strategies for selecting assets, managing risk, and determining the appropriate time to buy or sell investments. Common philosophies include value investing, growth investing, and index investing, each with its own approach to achieving financial goals. An investor's philosophy is often influenced by their risk tolerance, time horizon, and market outlook. For example, Warren Buffett, a proponent of value investing, focuses on purchasing undervalued companies with strong fundamentals. In contrast, index investing aims to replicate the performance of a market index, offering a more passive investment strategy.