
Graham & Dodd approach
The Graham & Dodd approach is a method of investing based on careful analysis of a company's true value. Investors look beyond market prices to evaluate a company's fundamentals, such as assets, earnings, and financial health. The goal is to buy stocks when they are undervalued compared to their intrinsic worth, providing a margin of safety. This disciplined, value-focused strategy emphasizes thorough research and patience, aiming to reduce risk and achieve steady, long-term returns by investing in companies that are financially sound but temporarily overlooked by the market.