Graham and Dodd Approach

The Graham and Dodd approach is a method for evaluating investments, especially stocks, based on fundamental analysis. It focuses on determining a company’s intrinsic value by examining its financial health, assets, earnings, and dividends. Investors then compare this intrinsic value to the current market price; if the stock is undervalued, it may be a good buy. This approach emphasizes careful, disciplined analysis to find stocks trading below their true worth, aiming for a margin of safety and long-term growth. It’s a cornerstone of value investing, promoting sound judgment over speculation.