In investing, it is important to know what you own. When you understand the companies that make up your portfolio, you become a smarter, more confident investor. That increased confidence leads to increased resilience to the ups and downs of the market, allowing you to stay invested longer and maximize your gains.
Fundamental analysis in simple terms, is a method of determining a stock's fair market value. The process of researching a company to determine if it is a worthwhile investment, is commonly referred to as "due diligence". This printable 14 page guide walks you through, step-by-step, how to perform due diligence on a company and increase your chances of picking under- or fair-valued stocks to add to your portfolio.
My guide has helped me to understand the financial health and future outlook of the companies that I am eyeing as a potential investment. I am sharing it with you in the hopes that it will also help you make more informed decisions on the companies that you choose to invest your hard earned money with.
Covered in the Guide:
- A step-by-step walkthrough of each financial statement (Income Statement, Balance Sheet, Cash Flow Statement) and how to pull the most important information out of them. Once you have that information, I explain how you can use it to make better informed decisions about the company's future and determine if they can potentially make you money in the long run.
- I teach you how to extract crucial information from other important elements of a company's 10K that are not the financial statements, like the Business, Risk Factor, and MD&A sections.
- Helpful resources to find key information related to a company's finances and identify their competitors.
- Key terms and what they mean for you as an investor.
- Important ratios, to include how to calculate them and why they are important for long term investment decision-making. I also a provide benchmarks for key ratios to help you understand what a company with strong financials should have.
- This guide is great for investors, not traders. If you are a trader looking for a guide on how to perform technical analysis and read charts, my guide is not the best option for you.
DISCLAIMER: I am not a financial advisor. This guide is for educational purposes and is only intended to aid you in learning about how to perform basic due diligence on a company. While this guide helps to provide a solid understanding of how to perform due diligence, it is not all encompassing, and you should always seek more information or professional advice to help you make sound investment decisions. This guide strictly serves to better help you understand the company or companies you are considering investing in. Before investing, you should always talk to a financial advisor to determine what is best for you.