I am starting this new thread where I will teach how to value shares based on their fundamentals. I think most of the traders are Technical Traders here and few base their investment decision based on fundamental approach. However, I personally feel that some of the best investments come your way when you put the two approaches (Fundamental and Technical) together.
In this thread, I am going to start teaching valuation from scratch. This will include analysing a Country, its Economy, its fundamentally rich sectors and finally it's shares. I am going to start two threads on this. One is this in which I am writing presently and another one will be the 'Discussion Thread' which will relate to all the topics posted here. I would like to maintain a flow while writing and hence would request all the member's to post their doubts and other queries in the discussion thread and not to post anything in this thread.
I sincerely hope this thread will benefit all those who wish to learn Fundamental approach in investment. I'll be creating an index on this page which will give everyone a clear idea of how we will be progressing towards learning Fundamental Analysis. Please note that I follow the Warren Buffet methodology for investment and hence valuations methods here can be different from what many research firms, IB firms etc use. I don't pay much attention to the numbers which company's deliver (please understand this statement in its context). I look more towards the prospects of growth, capability of management and the scope of the business going forward. I believe if these factors are in place, then the numbers will automatically fall into place.
Once I finish with the basic theory behind fundamental analysis, I will hand pick certain companies and will show you to implement what we have learnt. For further reference you can read two books Analysing Companies and Valuing Shares by Michael Cahlill and Investment Valuation by Aswath Damodaran.
Please Do Not Post Anything In This Thread. Please post your doubts and comments in the 'Discussion Thread'
Index (Will be updating regularly)
1. Valuation: An Introduction
2. Importance of Sector Analysis - I
3. Importance of Sector Analysis - II
(a) Forecasts for Demand
(b) Forecasts for Prices
(C) Forecasts for Costs
4. Analysing Economic Factors
In this thread, I am going to start teaching valuation from scratch. This will include analysing a Country, its Economy, its fundamentally rich sectors and finally it's shares. I am going to start two threads on this. One is this in which I am writing presently and another one will be the 'Discussion Thread' which will relate to all the topics posted here. I would like to maintain a flow while writing and hence would request all the member's to post their doubts and other queries in the discussion thread and not to post anything in this thread.
I sincerely hope this thread will benefit all those who wish to learn Fundamental approach in investment. I'll be creating an index on this page which will give everyone a clear idea of how we will be progressing towards learning Fundamental Analysis. Please note that I follow the Warren Buffet methodology for investment and hence valuations methods here can be different from what many research firms, IB firms etc use. I don't pay much attention to the numbers which company's deliver (please understand this statement in its context). I look more towards the prospects of growth, capability of management and the scope of the business going forward. I believe if these factors are in place, then the numbers will automatically fall into place.
Once I finish with the basic theory behind fundamental analysis, I will hand pick certain companies and will show you to implement what we have learnt. For further reference you can read two books Analysing Companies and Valuing Shares by Michael Cahlill and Investment Valuation by Aswath Damodaran.
Please Do Not Post Anything In This Thread. Please post your doubts and comments in the 'Discussion Thread'
Index (Will be updating regularly)
1. Valuation: An Introduction
2. Importance of Sector Analysis - I
3. Importance of Sector Analysis - II
(a) Forecasts for Demand
(b) Forecasts for Prices
(C) Forecasts for Costs
4. Analysing Economic Factors
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