Let's see about what is fundamental analysis first. That mean know a fundamental of a thing.
For example...
If we buy a car or bike we not want a advice of an auto mechanic otherwise we buy a house for that we not want a help of civil engineer or a Architecture like that.
If we want to invest in stock market that only made by who know all the things about it. This not free we also invest in it for that we want to know some basic things only.
We want buy a stock of a company mean we investing in it. For that what we want look is one go thought of the company.
For example...
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You are going to invest in Tata group you want to see the performance of the company in past and also the future of it low it perform in future also,
Let you want to know the fundamental analysis of a company mean you want to know three things.
- Balance sheet
- Profite and loss
- Cash flow
BALANCE SHEET
It mean,over all performance.
For example...
In cricket dhoni we see him for next machine that they see all records of him from starting to end like that.
If we going to invest in a company mean we want to see it from starting to the end.how the invest they get profit or not like that This is BALANCE SHEET.
PROFIT & LOSS
For the last few years there performance of profit and loss.
For example...
Kholi was playing in England if he want in next game mean they see their performance in past few years like that,
We want to see a company's profit and loss of the last one years.
CASH FLOW
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This mean see all the things a small thing also, detailing of it,
For example...
Aswin playing in england before he going their they started to analysis about them like a small dealing how is her's style also. Detail Analysing of it.
Like that we want to see the detailing of a company by their profit low money given to the people how many they had where they get depth also. This is CASH FLOW.
Something also we want to know about it.we see it by a example.
For example...
We going to start a stall for that what are we loo,
- Location
- Size
- Prize
LOCATION
We going to see a location for a stall how we see a good place for it. Where people gather more like that.
Our investment also see the company like best of it.
SIZE
The stall big or small size are we want big place mean see for big one like that,
The worker in the company by the we can found it is big or small company.
PRICE
We found a location and a stall the rate of the place is more like that,
The company stock also they giving cheap so, buy that company stock it is bad idea. By the stock in a company and buy. The best of them.
Ok we get a good stock and how to invest in it.and how to maintain we want to flow it for the hole sector by that we can know many things.
And don't invest in now company because, some old come back and start like now so, Research and inver in it.
By the blog it thing you got some idea of fundamental analysis I thing so.
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Thanks for read my post and welcome again