Whether you want to be a premiere stock analyst or not, we’ll assume that you at least want to understand stocks since you’re reading this. Whether it’s your burning desire to be a hotshot stock market analyst or you just like to be hands-on with your own portfolio, you’ve come to the right spot!
Fundamental analysis is the cornerstone of investing. In fact, some would say that you aren’t really investing if you aren’t using fundamental analysis. Because the subject is so broad, however, it’s tough to know where to start. There are an endless number of Investment Strategies that are very different from each other, yet almost all use the fundamentals.
The goal of this series is to provide a foundation for understanding Fundamental Analysis. It’s geared primarily at new investors who don’t know a balance sheet from an income statement.
By the end of this tutorial series, you will have a solid grasp of security analysis and be able to use this to further your knowledge on the fundamentals of stock investing.
The biggest part of fundamental analysis involves delving into a company’s financial statements. Also known as quantitative analysis, this step involves looking at revenue, expenses, assets, liabilities and all the other financial aspects of the firm.
Fundamental analysts look at these information to gain insights on a company’s future performance. A good part of this tutorial will be spent learning about the balance sheet, income statement, and the cash flow statement and how they all fit together.
But there is more than just number crunching when it comes to analyzing a company. This is where qualitative analysis comes in – the breakdown of all the intangible, difficult-to-measure aspects of a company.
We’ll wrap up the PinoyInvestor Academy’s Fundamental Analysis series with an introduction on valuation so you can be well-equipped to take on even higher levels of the subject in the future.
Ready? Let’s dive into things with our first section: What is fundamental analysis?