Chapter 18
Avoiding Investment Blowups with Fundamental Analysis
IN THIS CHAPTER
Finding out why ignoring fundamental analysis might expose you to investment losses
Exploring past speculative bubbles to see which fundamental data provided warnings
Understanding why poor investment decisions are so difficult to recover from
Considering a few of the financial shenanigans companies might play and how to spot them
In many sports, simply not making mistakes can be the best way to win. In tennis, for instance, blunders you make yourself are called unforced errors. Too many unforced errors usually give your opponents an easy victory, even if they’re not all that good.
Reducing the number of errors you make is also important in investing. As you’ll discover in this chapter, making too many unforced errors in picking the wrong investments can sink your returns. Fundamental analysis, while not perfect, can be a vital tool in allowing you to avoid at least some colossal disasters.
Making big mistakes in investing can dig you into a hole that’s extremely difficult, if not impossible, to climb ...
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