Graham-Dodd Model

The Graham-Dodd Model is a classic approach to value investing, formulated by Benjamin Graham and David Dodd in their influential book, "Security Analysis." It emphasizes the importance of assessing a company's intrinsic value, which is its true worth based on fundamentals like earnings, dividends, and assets. By comparing this intrinsic value to the market price, investors can identify undervalued stocks to buy or overvalued ones to sell. This model advocates for a disciplined, long-term investment strategy, prioritizing financial analysis over market trends and speculation.