Importance of fundamental analysis
Importance of fundamental analysis mainly the fundamental analysis is used by value investors and long term investors.it method used to determine the intrinsic value of stock.this style of analysis is more usually done by mutual fund managers to dive deep in company's financials and fundamental characteristics.many retail investors think fundamentals are boring and takes more time to quantify but they are worth doing. 6 STEPS TO ANALYZE FUNDAMENTALS OF COMPANY 1)MANAGEMENT INTEGRITY 2)INDUSTRY ANALYSIS 3)PROFIT AND LOSS,BALANCE SHEET,CASH FLOW STATEMENT 4)RATIOS ANALYSIS 5)VALUATION ANALYSIS 6)CONVICTION BUILDING First i want to discuss with you about the value of 6th step conviction building which is a key differentiator between long term investor and a short term guy.After analyzing all the above 5 steps you will get a good fundamental company .but if and only if you hold it for a long period of time.when writing this blog i recalled the Warren Buffet's quotes it is now i t...