"The Theory of Investment Value" (book)

"The Theory of Investment Value" by John Burr Williams introduces the idea that an investment’s worth is based on the present value of all future cash flows it can generate, primarily dividends. Essentially, the value of a stock or bond is determined by estimating its expected future earnings and discounting them back to their current worth. This approach emphasizes fundamental analysis over market trends, helping investors make informed decisions by focusing on the intrinsic value of an investment rather than short-term price movements. It laid the foundation for modern valuation techniques in finance.