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It’s Really Fundamental: How to Analyze Companies

Now that you have been introduced to some money-making strategies, you probably want to know which stocks to pick, and how to evaluate them so you can make better investments. This is the chapter that will help you choose and evaluate stocks using fundamental analysis. Other chapters in this section show you how to use technical analysis to evaluate stocks.

Let’s pretend that you are a doctor dealing with a new patient who has come to see you for a checkup. You might begin by asking questions, have the patient fill out a questionnaire, ask about his or her medical history, and ask whether anyone in the family has any medical problems. You will probably have a checklist. If you relate this preparation ...

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