Graham and Dodd investment & finance definition
Benjamin
Graham and David Dodd are the authors of a very prominent book published in
1940, Security Analysis. The book explains their fundamental approach to
investment and laid the groundwork for modern security analysis. They recommend
a growth-oriented investment strategy, which is characterized by purchasing the
stocks of undervalued assets because the market eventually will recognize their
value. The book advocates finding stocks with low price-earnings ratios.
See Graham and Dodd in Wall Street Words
Authors of Security Analysis, one of the more well known and durable works dealing with investment philosophy. Graham and Dodd stressed the importance of value investing, that is, buying shares of companies with undervalued assets and low price-earnings ratios.
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