Fundamental Analysis of Stocks
Brief discussion of one of the primary methods of stock analysis.
Fundamental analysis of stocks is the study of current and projected business prospects and financial conditions of a particular company. If one desires to make money on a stock, it only makes sense to examine and understand the company's business prospects. It Company B is eating Company A's lunch, then there is little incentive to buy stock in Company A.
Some of the greatest investors of all time have achieved their results by analyzing business and financial outlooks for companies.
Peter Lynch: One Up on Wall Street
Philip Fisher: Common Stocks and Uncommon Profits
Warren Buffet, Graham & Dodd
Crossy
In its most basic form, fundamental analysis of stocks is the study of a company's business prospects in order to determine what the stock price should be. The problem is, stock prices spend very little time near where they "should be"
More later...