A time-tested approach to selecting quality stocks. Fundamental Analysis provides investors with the tools and methods essential to successful investing. In a logical, step-by-step manner, author John Ritchie shows readers how to interpret company performance to determine whether a particular company's stock is undervalued or overvalued. Time-tested and supported by meticulous research, the methods outlined in this book will enable readers to build a stock portfolio that provides superior growth over a long period of time. For any investor who wants a logical and proven approach to investing, Fundamental Analysis will provide enduring value. Specific topics include: Principles of investing; Security analysis: the cornerstone of fundamental analysis; Understanding and evaluation financial statements; Earnings per share and cash flow analysis; Stock valuation.
This book covers difference area of fundamental analysis... but I find the book not covering cash flow a whole lot... it says that depreciation is a real cost... but i wonder why if it is a business that bought its own office? Then it has got a lot of depreciation but it is not real cost. the real effect is that the company constantly needs to spend on capital expenditure... and particularly, the capital expenditure that will go down in value. real estate goes up in value, for example. but if you have to keep on buying computers, they probably go down to 1/3 of its value in 5 years... so they are different.
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