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Fundamental Investing Fundamental Investing

This category discusses in-depth how fundamental investing works, the forms of analysis used by fundamental investing, including but not limited to financial analysis of corporate statements, dollar cost averaging, and long term investing.

  • Fundamental Investing

    Operating Expenses: Sales, General & Administrative (SG&A) 

    In the realm of business finance, understanding and effectively managing operating expenses is paramount to sustaining profitability and driving organizational growth. Among these expenses, Sales, General & Administrative (SG&A) costs represent a significant portion of a company’s operational budget. From the salaries of sales teams to office supplies and administrative overhead, SG&A expenses encompass a …
    Operating Expenses: Sales, General & Administrative (SG&A)
  • Fundamental Investing

    Cost of Goods Sold 

    In the intricate landscape of business finances, understanding the Cost of Goods Sold (COGS) stands as a fundamental pillar. COGS represents more than just a line item on a financial statement; it unveils the intricate web of expenses directly associated with producing goods or services, serving as a cornerstone for assessing operational efficiency, pricing strategies, …
    Cost of Goods Sold
  • Fundamental Investing

    Profit & Loss (P&L) Analysis 

    Understanding the financial health of a business is paramount for its success and sustainability. Among the various tools available for financial analysis, the Profit & Loss (P&L) statement stands out as a cornerstone document. Also known as an income statement, the P&L statement provides a comprehensive overview of a company’s financial performance over a specific …
    Profit & Loss (P&L) Analysis
  • Fundamental Investing

    Balance Sheet Analysis 

    A balance sheet is a financial document disclosing a company’s assets, liabilities, and shareholder equity at a given moment. It serves as a foundation for investor returns calculation and assessment of a company’s financial structure. In essence, the balance sheet offers a concise overview of a company’s assets, debts, and shareholder investments. When combined with …
    Balance Sheet Analysis
  • Fundamental Investing

    Corporate Governance 

    Corporate governance refers to the framework of regulations, customs, and procedures that govern the direction and oversight of a company. It entails managing the interests of various stakeholders, including shareholders, executives, customers, suppliers, creditors, regulators, and the public. Consequently, corporate governance permeates every aspect of organizational management, encompassing strategies, internal checks, performance evaluation, and transparency …
    Corporate Governance
  • Fundamental Investing

    Industry and Sector Rotation 

    Navigating the dynamic landscape of financial markets requires investors to adapt to changing economic conditions and market trends. Industry and sector rotation strategies offer a framework for reallocating investments across different sectors based on their performance and prevailing economic conditions.  By understanding the cyclical nature of economic cycles and the performance characteristics of various sectors, …
    Industry and Sector Rotation
  • Fundamental Investing

    Intrinsic Value 

    In a world driven by material wealth and external validation, there’s a profound concept that goes beyond mere monetary worth – intrinsic value. Rooted in philosophy, economics, and ethics, intrinsic value shapes our perceptions and decisions. Despite its abstract nature, it profoundly influences how we interact with the world. At its core, intrinsic value is …
    Intrinsic Value
  • Fundamental Investing

    Enterprise Value to EBITDA 

    In the realm of financial analysis and valuation, metrics play a pivotal role in assessing the health and worth of a company. Among these, the Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) ratio stands out as a fundamental measure, offering insight into a company’s valuation relative to its operating performance.  Widely …
    Enterprise Value to EBITDA
  • Fundamental Investing

    Piotorski F-Score 

    In the fast-paced world of finance, where market dynamics constantly shift and investment decisions are made in the blink of an eye, the need for reliable and effective tools to evaluate company fundamentals has never been greater.  In this landscape, the Piotroski F-Score emerges as a beacon of clarity amidst the noise, offering investors a …
    Piotorski F-Score
  • Fundamental Investing

    Price to Book Ratio (P/B Ratio) 

    In the intricate landscape of investment analysis, the price-book ratio (P/B Ratio) emerges as a fundamental metric, offering investors a window into the relationship between a company’s market price and its book value. This ratio serves as a vital tool for evaluating the relative worth of a company’s stock, providing insights into its underlying asset …
    Price to Book Ratio (P/B Ratio)