Fundamental Analysis For Dummies, 2nd Edition

Chapter 14

Gleaning from the Fundamental Analysis Done by Others

IN THIS CHAPTER

Digging into analyst research reports for clues on whether a stock is attractive or not

Finding out which other investors own a stock and guessing what they might see in it

Using reports from credit-rating agencies to bolster your own fundamental analysis

Discovering social networking and how to use knowledge of others to help you

Fundamental analysts don’t generally travel in packs or flocks. Fundamental analysts, almost by nature, approach investing as a solitary pursuit. Some fundamental analysts even fear getting the input of too many people, as biases might distract them from financial ratios and numbers and cause personal opinions to taint pure objectivity.

With that said, though, part of the job of fundamental analysts is to survey the financial landscape for any information that might affect the value of a company or change its future prospects. That’s where it can be worthwhile to look into the fundamental research done by others. Fundamental analysis from Wall Street brokerage firms and credit-rating agencies can provide details that you might have missed in your own work. Similarly it can be helpful to find out which other investors are buying a stock you’re interested in and what they’re saying about it.

Certainly, as a fundamental analyst, you shouldn’t let the moves of others dictate what you do. But the findings of others can provide fresh information for you or act as a check against ...