Fundamental investing begins with understanding how markets and basic investment concepts work. This category is designed for beginners who want a clear, structured introduction to investing.
You’ll learn how the stock market works, how to buy and sell stocks, and how to distinguish between investing and speculation.
Topics include stock market basics, investment strategies, and index fundamentals such as the S&P 500 and Nasdaq.
Introduction A stock has a price every time the market is open. That does not mean the price tells you what the business is actually worth. This distinction between price and value is one of the central ideas in fundamental investing. Instead of assuming that the market price represents fair value, fundamental investors attempt to […]
What Is Intrinsic Value? A Fundamental Investor’s Guide Read More »
Cash flow is one of the most important concepts in fundamental investing. It shows how much real cash a business generates and uses over time. While profit tells you what a company earns on paper, cash flow shows what actually happens to money. At the Fundamental Investing Institute, we emphasize understanding cash flow because it
Cash Flow Explained: A Beginner’s Guide to Understanding How Money Moves in a Business Read More »
If you want to understand how a business actually performs, you need to understand its income statement. An income statement is a financial report that shows how much money a company makes, how much it spends, and whether it generates a profit over a specific period. At the Fundamental Investing Institute, we focus on understanding
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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
What Is a Balance Sheet? How to Read and Understand It Read More »
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 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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The Russell 2000 is an index managed by FTSE Russell, which consists of companies with smaller market capitalization and is thus considered a “small cap” index. The term “small cap” is somewhat of a misnomer. Although there is no official definition, in the investment industry the term “small cap” generally refers to companies with market
The Russell 2000: Understanding Stock Indices Read More »
