9
The investment decision – buy or sell?
What topics are covered in this chapter?
- Why fundamentals are important ... but not the whole story
- The decision process
- Step 1 Putting together prospects and valuation
- Step 2 Ascertaining the investment style
- Step 3 Looking at the risk/reward profile
- Step 4 Considering timescale – trading v investment
- Weighing up your decision
- Key issues in the current market
- Summary
- Checklist
Why fundamentals are important ... but not the whole story
One of the interesting aspects about valuation is that it may not bear any relation to the share price. The share price will be affected by a whole host of short-term factors and influences. This is often referred to as ‘the sentiment’ affecting a share as distinct from ...
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