Chapter 1. The Analysis Process

Experts tell us that investment success requires a disciplined approach for finding, researching, and analyzing potential investments. This chapter describes one such approach, and the ensuing chapters fill in the details. It’s based on sound principles that are practiced by market-beating money managers. It’s certainly not the only way, and it may not be the best way. But it’s a place to start, and following it will make you a better investor. After you’ve mastered these strategies, you can modify them to suit your needs.

The process involves finding investment candidates, weeding out the obvious misfits, researching and analyzing the survivors, picking the best candidates, and equally important, applying a clear-cut ...

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