I am back from my hiatus. Happy 2013!!! Hope you're all starting the year on the right foot and are excited to make this your most successful financial year to date (only for it to get better as time goes on!!). I want to continue my stock market investment series which what I believe is the next step taking in to consideration all of my previous posts. We are now going in to the analytical world of....
Just a little background info-- When valuating a stock to determined whether it would be a good buy or not; a lot of investors focus on two key valuation procedures: Fundamental and Technical analysis. Fundamental analysis takes a CLOSE LOOK at the company's financial health and involves diving in to income statements, balance sheets, etc.
But wait--- before you panic and get overwhelmed with "all the math" that you are probably picturing right now, please don't! Let me assure you that as a undergraduate student of business and finance as well as in my MBA courses I have been taught the very 'scholastic' and 'formal' ways of fundamental analysis (for lack of better words) which may come across as too overwhelming for someone just starting out in the investment world (even for me!).
Hence, the way I will approach the post on fundamental analysis will be by using the techniques I have learned from following a financial guru I look up to and admire: Julie Stav. I invite you to learn more about her (check out her website) she is great and makes financial education super simple!! Hence, I will be borrowing her material and will be referencing her now that we are diving in to the "do your homework" part of the stock investment world. I will be sharing with you Julie's approach to fundamental and technical analysis as I find it to be simpler to understand than any other way I have encountered in my educational career.
NOTE: I will be breaking up the Fundamental Analysis piece in to several posts considering I want to continue my step-by-step approach to teaching about stock market investing.
CHEERS TO HEALTH, WEALTH AND HAPPINESS IN 2013!
NEXT POST: Julie's BE A PROFIT strategy.