Graham-Dodd theory

The Graham-Dodd theory, developed by Benjamin Graham and David Dodd, focuses on value investing, which emphasizes buying stocks that are undervalued compared to their intrinsic worth. It advocates analyzing a company's financial health, earnings potential, and market position rather than following market trends or speculation. The idea is to invest based on careful analysis and patience, aiming for long-term gains. This approach laid the foundation for modern investment strategies, encouraging investors to seek fundamental value and make informed decisions rather than merely reacting to market fluctuations.