CHAPTER 8Using Fundamentals to Make an Investment Decision

Know what you own, and know why you own it.

PETER LYNCH

By now I have filled your brain with so much information that you probably feel a little despaired. Unfortunately, this bewilderment is a necessary state of being in the world of investing. It is really not my goal to confuse you when it comes to investing, but the truth is that there are no written rules and no way to invest with any level of success without knowing the basic information, which can seem somewhat overwhelming in the beginning.

Thus far I have provided basic information concerning the three primary financial statements and given insight into how they are incorporated into a stock’s valuation. The question that remains ...

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