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Company accounts
Investment in shares requires analysis of companies. To avoid analysis is to end up speculating in shares in an uninformed manner. There is a world of difference between a speculator and an ‘investor’.
A subtle blend of two elements is needed for successful analysis: quantitative and qualitative data. An assessment of the company’s current financial position, its history of profit growth and other measures of performance are essential quantitative data used to inform the investor trying to gauge future prospects. We compare the current value of projected future business income (per share) with the current share price to draw conclusions about whether the market is over- or undervaluing a company.
Note from this that historical ...
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