The Graham and Dodd Method, also known as value investing, is an investment approach outlined by Benjamin Graham and David Dodd in their landmark book 'Security Analysis,' initially published in the 1930s. This method advocates for buying undervalued stocks based on thorough fundamental analysis, with the expectation that these stocks will eventually appreciate to their true intrinsic value in the marketplace.
A special situation refers to an investment opportunity often involving stocks that are expected to change in value significantly due to imminent or ongoing events. These can include undervalued stocks and those that fluctuate wildly due to specific news developments.
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