Knowing how to read a balance sheet is essential for anyone looking to make informed financial decisions, whether you’re an investor, business owner, or simply want a clearer picture of a company’s financial health. This article explains what a balance sheet is, breaks down its key components, and shows how investors use it to evaluate […]
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Introduction Fundamental investing is a method of analyzing businesses to determine their intrinsic value based on financial performance, competitive advantage, and long-term earning power. At the Fundamental Investing Institute, we teach investors and entrepreneurs how to apply fundamental investing principles to evaluate companies, reduce risk, and build long-term wealth through rational, business-focused decision-making. This approach
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Part 5: A Primer on Fundamental Analysis Introduction to Fundamental Analysis In the previous post in this Beginner Guide to Stock Investing, we discussed how individual investors have several key advantages over professional money managers, while also recognizing the key skills, time commitment, and behavioral traits needed to be a successful, long-term stock investor. In
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Part 4: Investing in Individual Stocks Many beginner investors eventually face an important question: should they invest directly in individual stocks, or simply buy into an investment fund? The goal of investing in common stocks (or any other asset) is to earn the greatest return for the least amount of risk. But whether an investor
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This post is Part 3 of a Beginner’s Guide to Stock Investing series. Part 3: How to Buy and Sell Stocks How do investors actually buy and sell stocks? The answer depends on the market in which the stock is sold. In Part Two of this guide, we learned how the stock market consists broadly
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This post is Part 2 of a Beginner’s Guide to Stock Investing series. This concept is a core part of fundamental investing. Part Two: What Is the Stock Market? In December of 1980, a computer company founded out of a garage in Los Angeles, California, began trading on a stock exchange known as the National
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This post is part of an ongoing series reflecting on Warren Buffett’s career and investment philosophy. Buffett on Scale and Structural Advantage In 1999, at the height of the dotcom bubble, Warren Buffett gave an interview for BusinessWeek. Buffett was discussing how the combination of an over-heated stock market and Berkshire Hathaway’s large size made
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This post is Part One of a Beginner’s Guide to Stock Investing series. New to investing? Start with our guide to fundamental investing. Part 1: What is a Stock? Most people have some familiarity with the stock market. But what is exactly is a stock? Why do people buy stocks? There are plenty of people
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Why Investors Should Care In a fiat monetary system, central bank credibility is the anchor for inflation expectations. When that credibility is weakened by political pressure, the effects are not always immediate, but they are significant for investors over time. Investors should care about Federal Reserve independence because: Key Takeaways for Investors For a deeper
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Early Life and Family Influences In the first post in this series, I wrote a bit about how I encountered Warren Buffett’s investment philosophy as an undergraduate student (read it here). In this post, I discuss Warren Buffett’s early years and some of the influences that shaped his early career. Warren Buffett was born on
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