Dodd and Braham theory
\nA method advocated by the two authors in their book Security Analysis, published some sixty years ago, which advises: 1. Buy shares of companies with undervalued assets, as these are bound to appreciate to their true value; 2. Buy shares in companies where current assets exceed current liabilities and all long \u2013 term debt; 3. Also, such shares should be selling at a low of P\/E. 4. Sell the shares when they have appreciated by 50 \u2013 100 percent. This should take less than three years.<\/p>\n
Great Crash
\nOn 2 October 1929 the New York Stock Exchange price index fell by 49 points, followed b a drop of 43 points the next day. Stock prices continued to drop, until on 8 July 1932 the index stood at 41, 10.76% of its peak level at 381 in September 1929, All the symptoms of DEPRESSION were seen in their most aggravated state. On one day alone, 29 October 1929, 16,410,030 shares changed hands at throwaway prices, millions became unemployed, scores of factories shut down, over 5000 banks failed, and the US went through its worst ever economic disaster. As a result reformative Acts to control the stock market started being legislated from 1933 onwards.<\/p>\n
Gross National Product (GNP)
\nThe total value in money of all finished good and Graham and Dodd Strategy of Investmentservices produced in an economy in one full year, and all net property income from abroad. The GNP growth rate is one of the most important ECONOMIC INDICATORS of a country\u2019s health. The inflation \u2013 adjusted version of the GNP is called the real GNP.<\/p>\n
Gross
\nThe amount without deductions; hence gross profit is without deduction of depreciation and tax, gross income is without deduction under any of the exemption clauses, and gross dividend income is without deduction of income tax.<\/p>\n
Growth Shares
\nShares of fast \u2013 growing companies which show increasing and higher than average earnings per share than the industry. Good for long term investment, although the current yield of such shares can be insignificant because of their high P\/E RATIOS.<\/p>\n","protected":false},"excerpt":{"rendered":"
Dodd and Braham theory A method advocated by the two authors in their book Security Analysis, published some sixty years ago, which advises: 1. Buy shares of companies with undervalued assets, as these are bound to appreciate to their true value; 2. Buy shares in companies where current assets exceed current liabilities and all long […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[996,998,997,999,1000],"class_list":["post-220","post","type-post","status-publish","format-standard","category-general","tag-dodds-and-braham-theory","tag-gnp","tag-great-cash","tag-gross","tag-growth-share","entry"],"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=220"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/220\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}