Determine the strength of any business with fundamental analysis
Have you ever wondered the key to multibillionaire Warren Buffet's five-decade run as the most successful investor in history? The answer is simple: fundamental analysis. In this easy-to-understand, practical, and savvy guide, you'll discover how it helps you assess a business' overall financial performance by using historical and present data to forecast its future monetary value--and why this powerful tool is particularly important to investors in times of economic downturn.
It's more important than ever for investors to know the true financial stability of a business, and this new edition of Fundamental Analysis For Dummies shows you how. Whether you're a seasoned investor or just want to learn how to make more intelligent and prudent investment decisions, this plain-English guide gives you practical tips, tricks, and trade secrets for using fundamental analysis to manage your portfolio and enhance your understanding of shrewdly selecting stocks!
* Predict the future value of a business based on its current and historical financial data
* Gauge a company's performance against its competitors
* Determine if a company's credit standing is in jeopardy
* Apply fundamental analysis to other investment vehicles, like currency, bonds, and commodities
With the help of Fundamental Analysis For Dummies, you just may find the bargains that could make you the next Warren Buffet!
Autorentext
Matt Krantz, a nationally known financial journalist, has been writing for USA Today since 1999. He covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Matt also writes a daily online investing column called "Ask Matt," which appears every trading day at USATODAY.com.
Zusammenfassung
Determine the strength of any business with fundamental analysis
Have you ever wondered the key to multibillionaire Warren Buffet's five-decade run as the most successful investor in history? The answer is simple: fundamental analysis. In this easy-to-understand, practical, and savvy guide, you'll discover how it helps you assess a business' overall financial performance by using historical and present data to forecast its future monetary valueand why this powerful tool is particularly important to investors in times of economic downturn.
It's more important than ever for investors to know the true financial stability of a business, and this new edition of Fundamental Analysis For Dummies shows you how. Whether you're a seasoned investor or just want to learn how to make more intelligent and prudent investment decisions, this plain-English guide gives you practical tips, tricks, and trade secrets for using fundamental analysis to manage your portfolio and enhance your understanding of shrewdly selecting stocks!
- Predict the future value of a business based on its current and historical financial data
- Gauge a company's performance against its competitors
- Determine if a company's credit standing is in jeopardy
- Apply fundamental analysis to other investment vehicles, like currency, bonds, and commodities
With the help of Fundamental Analysis For Dummies, you just may find the bargains that could make you the next Warren Buffet!
Inhalt
Introduction 1
About This Book 2
Icons Used in This Book 2
Beyond the Book 3
Where to Go from Here 3
Part 1: What Fundamental Analysis is and Why You Should Use it 5
Chapter 1: Understanding Fundamental Analysis 7
Why Bother with Fundamental Analysis? 8
Some of the real values of fundamental analysis 9
Driving home an example 10
Putting fundamental analysis to work 10
Knowing what fundamentals to look for 12
Knowing what you need 13
Knowing the Tools of the Fundamental Analysis Trade 14
Staying focused on the bottom line 14
Sizing up what a company has to its name 14
Burn baby burn: Cash burn 15
Financial ratios: Your friend in making sense of a company 15
Making Fundamental Analysis Work for You 16
Using fundamentals as signals to buy or sell 16
The perils of ignoring the fundamentals 16
Using fundamental analysis as your guide 17
Chapter 2: Getting Up to Speed with Fundamental Analysis 19
What is Fundamental Analysis? 20
Going beyond betting 20
Understanding how fundamental analysis works 22
Who can perform fundamental analysis? 23
Following the money using fundamentals 25
Comparing Fundamental Analysis with Other Ways of Picking Investments 26
How fundamental analysis stacks up against index investing 26
Comparing fundamental analysis with technical analysis 27
Putting Fundamental Analysis to Work for You 28
How difficult is fundamental analysis? Do I need to be math wizard? 29
Is fundamental analysis for you? 29
The risks of fundamental analysis 30
Making Money with Fundamental Analysis 31
Putting a price tag on a stock or bond 31
Being profitable by being a contrarian 32
The Fundamental Analysis Toolbox 33
Introducing the income statement 33
Balance-sheet basics 33
Getting the mojo of cash flows 34
Familiarizing yourself with financial ratios (including the P-E) 35
Chapter 3: Gaining an Upper Hand on Wall Street: Why Fundamental Analysis Gives Investors an Edge 37
Better Investing with Fundamentals 38
Picking stocks for fundamental reasons 39
Dooming your portfolio by paying too much 43
Sitting through short-term volatility 44
Relying on the Basic Info the Pros Use 45
What is the Warren Buffett Way? 45
Checking in on Graham and Dodd 47
Figuring Out When to Buy or Sell a Stock 48
Looking beyond the per-share price 49
Seeing how a company's fundamentals and its price may get out of alignment 50
Avoiding overhyped story stocks 51
Pairing buy-and-hold strategies with fundamental analysis 52
Looking to the long term 53
Patience isn't always a virtue 54
Chapter 4: Getting Your Hands on Fundamental Data 55
Getting in Sync with the Fundamental Calendar 56
Which companies must report their financials to the public? 56
Kicking it all off: Earnings season 57
Getting the earnings press release 58
Bracing for the 10-Q 59
Running through the 10-K 61
Flipping through the annual report 62
There's no proxy like the proxy statement 63
Getting up to Speed with the Basic Accounting and Math 64
Operating activities: Finding smooth operators 65
Investing activities: You have to spend money to make money 65
Financing activities: Getting in tune with high finance 66
Learning a key fundamental math skill: Percentage changes 67
How to Get the Fundamental Data You Need 68
Getting acquainted with the SEC's database 68
Step-by-step directions on accessing company fundamentals using EDGAR 69
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