Stock Profits: Getting to the Core—New Fundamentals for a New Age

The standard financial reports in the media focus primarily on

price changes from day to day. Whether for stocks or index move-

ments, little is reported in the press about the fundamentals, and for

good reason. Price change is specific and immediate; it is easily con-

veyed in the form of a sound bite; and people understand what it

means. The problem in this media approach is that short-term tech-

nical information (such as daily price movement) reveals nothing

about the more important questions: How do you identify stocks

that are going to outperform the market? What is the true nature of

investment risk? And why are the financial numbers the real ...