Graham-Dodd principles
The Graham-Dodd principles are fundamental guidelines for value investing, established by Benjamin Graham and David Dodd in their influential book "Security Analysis." These principles emphasize the importance of thorough analysis of a company's financial health, assets, and earnings to determine its intrinsic value. Investors should buy stocks when they are priced lower than their true worth, offering a margin of safety. The approach prioritizes long-term investment based on careful research rather than speculation, encouraging a disciplined mindset and focusing on minimizing risks while seeking reliable returns. It promotes investing with a logical, evidence-based strategy.
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Graham & Dodd principles, established by Benjamin Graham and David Dodd, emphasize value investing by focusing on a company's intrinsic value rather than its current market price. They advocate for thorough financial analysis, prioritizing fundamentals like earnings, assets, and debts. Investors should buy undervalued stocks with a margin of safety—meaning a price significantly lower than perceived value. This approach encourages patience and discipline, aiming for long-term gains rather than short-term speculation. Overall, the principles promote a rational, informed investment strategy grounded in careful research.