How to make profits in the stock market — steadily and consistently
Fundamental analysis is an essential, core skill in an investor's tool-kit for evaluating a company on the basis of its track sales, earnings, dividends, products, management, etc., as well as the economic and industry outlook. It is a value-based approach to stock market investing — solid and prudent — that typically offers handsome profits to the long-term investor.
Raghu Palat's book will help you master the essentials of fundamental analysis. It clearly explains, with illustrations, all the analytical tools of economic, industry and company analysis, including ratios and cash flow. It shows you how to judge a company's management and its products, and discover what actually lies behind the figures and notes in a company's annual report. And, how to calculate the intrinsic value of a share
Fundamental analysis will help you base your investment decisions on relevant information, not tips, hunches or assumptions. Doing that will help you make solid, consistent long-term profits. Legendary modern day investors like Warren Buffet and Peter Lynch used basically this approach to amass fortunes on the stock market. So can you.
The book has 3 parts - Economic, Industry and Company Analysis - each being a superset of the successor - implying that economic analysis would apply to a wide variety of industries and industry analysis would apply to all companies that belong to that sector.
Company Analysis is discussed in specific parts like management, company, annual report, etc. These chapters divulge much-needed information on interpreting the company you're going to invest. There are a bunch of ratios to understand the financial status of the company, however, I don't think all of these are applicable to all types of companies.
The book could have been a little concise at places, but overall, this book helped me understand Fundamental Analysis better. This is not the first 'Stock Market' book I read, so don't think it's for beginners.
This is just a book of definitions without much analysis or strategic approaches. It is a good book to keep as an inventory of terms. Don't expect much beyond that. The formula illustrations are also pretty low quality.
Excellent book on fundamental analysis inl layman language and explain the concept in simple language.I am a chartered accountant stilll I learnt lot from this book
My second book on investing. This books gives general information about how to evaluate a company. Felt like a good place to start learning about analysis before investing in any company.