Determine the strength of any business with fundamental analysis
Have you ever wondered the key to multibillionaire Warren Buffet's five-decade run as the most successful investor in history? The answer is simple: fundamental analysis. In this easy-to-understand, practical, and savvy guide, you'll discover how it helps you assess a business' overall financial performance by using historical and present data to forecast its future monetary value-and why this powerful tool is particularly important to investors in times of economic downturn.
It's more important than ever for investors to know the true financial stability of a business, and this new edition of Fundamental Analysis For Dummies shows you how. Whether you're a seasoned investor or just want to learn how to make more intelligent and prudent investment decisions, this plain-English guide gives you practical tips, tricks, and trade secrets for using fundamental analysis to manage your portfolio and enhance your understanding of shrewdly selecting stocks!
Predict the future value of a business based on its current and historical financial data
Gauge a company's performance against its competitors
Determine if a company's credit standing is in jeopardy
Apply fundamental analysis to other investment vehicles, like currency, bonds, and commodities
With the help of Fundamental Analysis For Dummies, you just may find the bargains that could make you the next Warren Buffet!
Matt Krantz, a nationally known financial journalist, has been writing for USA Today since 1999. He covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Matt also writes a daily online investing column called "Ask Matt," which appears every trading day at USATODAY.com.
Introduction 1 Part 1: What Fundamental Analysis Is and Why You Should Use It 5 CHAPTER 1: Understanding Fundamental Analysis 7 CHAPTER 2: Getting Up to Speed with Fundamental Analysis 19 CHAPTER 3: Gaining an Upper Hand on Wall Street: Why Fundamental Analysis Gives Investors an Edge 37 CHAPTER 4: Getting Your Hands on Fundamental Data 55 Part 2: How to Perform Fundamental Analysis 75 CHAPTER 5: Analyzing a Company's Profitability Using the Income Statement 77 CHAPTER 6: Measuring a Company's Staying Power with the Balance Sheet 97 CHAPTER 7: Tracking Cash with the Statement of Cash Flow 115 CHAPTER 8: Using Financial Ratios to Pinpoint Investments 133 CHAPTER 9: Mining the Proxy Statement for Investment Clues 153 Part 3: Making Money with Fundamental Analysis 171 CHAPTER 10: Looking for Fundamental Reasons to Buy or Sell 173 CHAPTER 11: Finding a Right Price for a Stock Using Discounted Cash Flow 195 CHAPTER 12: Using the Annual Report (10-K) to See What a Company Is Worth 213 CHAPTER 13: Analyzing a Company's Public Comments and Statements 233 CHAPTER 14: Gleaning from the Fundamental Analysis Done by Others 245 CHAPTER 15: Performing "Top Down" Fundamental Analysis 265 Part 4: Getting Advanced with Fundamental Analysis 277 CHAPTER 16: Digging into an Industry's Fundamentals 279 CHAPTER 17: Pinpointing Trends Using Fundamental Analysis 295 CHAPTER 18: Avoiding Investment Blow-Ups with Fundamental Analysis 311 CHAPTER 19: Marrying Fundamental Analysis with Technical Analysis 325 Part 5: The Part of Tens 345 CHAPTER 20: Ten Things to Look at When Analyzing a Company 347 CHAPTER 21: Ten Things Fundamental Analysis Cannot Do 355 Index 365