Graham and Dodd Investing Philosophy

Graham and Dodd investing, also known as value investing, focuses on buying stocks that are undervalued compared to their intrinsic worth, or true value. Investors analyze a company's financial health, assets, earnings, and the overall market to determine a safety margin—buying below intrinsic value to reduce risk. The philosophy emphasizes patience, disciplined analysis, and long-term thinking, trusting that the market will eventually recognize a company's true value. This approach aims to protect investors from overpaying and to generate consistent, risk-adjusted returns over time.