Fundamental Analysis

What is Fundamental Analysis:

Fundamental analysis is the way of selecting stocks based on company’s business condition and financial performance.

Fundamental analysis is useful only for a stock market long term investment.

you can use both fundamental and technical analysis together for long term investment.

Long term investment is the only way in the stock market to generate wealth.

With the help of fundamental analysis, you can select best stocks by yourself for long term investment.

This analysis will help you to determine at what price you should purchase stocks when you are doing investment so in future you will stay profitable from the investment. It is also called value investment method.

With the help of value investment method, you can choose undervalued stocks for doing long term investment.

By using value investment method Mr.Warren buffet become word 3rd richest person in this world.

Fundamental Analysis King - Warren Buffet

If you are able to apply value investment method same like warren buffet then you can also become one of the richest person in this world same as him.

Under this analysis, You have to understand company’s following details.

  • business type and its model.
  • balance sheet, profit & loss statement
  • various types of factors affecting to company’s business. E.g: Company’s owners and its background etc.

Please follow steps in order to learn about fundamental analysis for long term investment.

If you are able to follow steps then you can able to create wealth via long term investment.

Note:

Before you read each below steps please go to this link Click here and understand why do we need to follow below steps.

Step-1: Read Investment books

  • Kindly Study following investment books to learn about fundamental analysis.
  • All below mentioned books has been written by very well known professionals.
  • Order all below books and learn investment at your home.

1.Everything you wanted to know about the stock market

2.How to Avoid Loss and Earn Consistently in the Stock Market

3. Peter Lynch Book

4. The Intelligent Investor by Benjamin Graham

Step-2:- Prepare Case studies for learning

  • By using books knowledge prepares 3 successful and failure case study of last 5 years.
  • The successful case study includes companies which have provided more than 1000% return in last 5 years.
  • Failure Case study includes companies which have provided negative return >50% return in last 5 years.
  • If you put effort for preparing case studies then you can maximize your future profit.

Step-3: Open Broker Account &Do Self-practice

  • You can  Click Here to understand about stockbroker functionality.
  • By using books and case studies knowledge now you invest a small amount of money in investments for self-practice.
  • you can filter your stocks for investment via two good websites.  1. screener 2.Value Research
  • Gain as much as experience via this step because it will help you to minimize your big losses in investment.

Step-4: Earn Money.

  • once you see positive results in step-3 then you can make the higher amount of investment for better returns.

If you want more information about long term investment then you can click on a below link name Stocks Investopedia.

Stocks Investopedia

Conclusion

“Once you put effort to learn about fundamental analysis then you will able to create wealth via stock market investment.”

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