Fundamental Analysis For Dummies, 3rd Edition

Chapter 3

Gaining an Upper Hand on Wall Street: Why Fundamental Analysis Gives Investors an Edge

IN THIS CHAPTER

Finding out how fundamental analysis can turn you into a better investor

Discovering how some of the best investors put fundamental analysis to use

Uncovering clues on when to buy or sell a stock

Applying fundamental analysis to buy-and-hold investment strategies

Fundamental analysis isn’t the easiest way to invest. There’s a bit of math involved. You’ll need to learn some terms. And to perform fundamental analysis, you need to ferret out and analyze somewhat arcane pieces of financial information.

Why go to all this trouble? That’s the question you’ll find the answer to in this chapter. You’ll discover why the rigors of fundamental analysis, and the ultimate goal of not overpaying for stocks and finding cheap stocks to buy, can help you obtain better long-term success in investing. Meanwhile, you’ll see how some basic fundamental analysis can help you avoid making mistakes that will be difficult to recover from.

Of course, no discussion of fundamental analysis is complete ...