the real fundamentals - II

if the past performance doesn't necessarily indicate future performance

how come fundamental analyses based on the past and present figures indicate future figures?

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before touching a company for investing

ask three more questions

- is it profitable? (if not, can it be profitable?)

- is it futuristic? (is it future-proof?)

- is it healthy? (even a profitable and futuristic business is bound to collapse if it is not healthy? poor corporate governance, unfaremeans, artificial unsustainable means, etc.)

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as defined by wikipedia

"Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets."

.......seems like rocket science

.............enough complex to leave scope for alibis and excuses

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don't analyse the mountains of fundamental data yourself.

don't reinvent the wheel.

learn to analyse the analyses of fundamental analysts.

there are hundreds out there, all nervous enough not to be wrong.