THE FUNDAMENTAL ANALYSIS
In which we are going to see briefly what is that of the fundamental analysis in the first place we have seen that the objective of the analysis of the investments is to be able to profit the capital and to make money of consistent form and with a limited risk well as this is a is a good Fin but how we are going to do what is the first thing that is always thought is good in which assets I am going to invest which I am going to buy which I am going to sell for example we are talking about actions as there are a large number of stocks in the markets that I can buy And sell by which I sing and then once I decide which title I will buy at what price I am going to buy it and since I will sell it to obtain a profitability with the difference of the prices for all this it is necessary to make a series Of analysis that also depend on our investor profile we are long-term investors or if we are short-term investors so that we are more interested in the long-term investors’ speculation may be those for example that within the set of private investors Who want to simply have a money at the time of retirement as one of the most recommended analysis is the fundamental analysis fundamental analysis which allows us to make a series of forecasts have some expectations how.
All the long-term evolution of assets the fundamental analysis can be used with any type of asset but the most common is to speak fundamental analysis in relation to the shares listed on the stock exchange in which the fundamental analysis consists of good as we have commented In analyzing those assets and now we will focus on the case of stocks that have a greater potential for revaluation so that we buy those shares and obtain a return for both the share of dividends that the company gives us the profits and Of the value of the action that goes increasing with the passage of the years well in what consists this analysis because it is to analyze the company in its totality all the bases of the base that sustains there is a series of analyzes by the pest analysis Analysis dafo the porter value chain but we will general what it is is to analyze the economic environment and specific factors of the company what is the general economic environment that affects the profits of the company as the economic growth of GDP evolution Of the interest rates that allow or hinder the company can finance the exchange rate that influences international competition and then there are the specific factors of the company to be the evolution of the portfolio of customer patents in case of Technological companies what is the competition and that is to say that this allows us to have a general idea of the business of the company and to see how it is going to evolve in the future that problem we have since the data the data appear with a semiannual annual periodicity quarterly but they are not data That allow us to be controlling the price of the action at the daily level ie the fundamental analysis serves us for short-term speculation and that is what must be taken into consideration within the fundamental analysis because we find various strategies and the two most important Are the value investing and the investing grouth in which the value investing consists as well in comparing the actual price that they have in the market at the moment the shares with the theoretical value that we calculate ourselves based on the accounting information of which we have then If we see that the real value differs a lot from the value of the theoretical value say that the real value is lower than the theoretical value then we are interested in buying the shares.
Because we think that over time they reach that theoretical value that we have calculated and then we will obtain a return as the price comes closer to our theoretical value because we will be selling the shares an example of an international investor known to use this strategy is Warren Buffett is a Is always in the list of the richest people of Forbes is always among the top five in this analysis because they can be used as indicators that draws attention to the companies to be analyzed we find the Price Arning Ratio or Price to Book Ratio also that good and another series of economic financial financial ratios that indicate us the situation of the company and are a first signal to see if we focus on the detailed analysis of them or not well because along with Value investing we have the Grouth Investing that is fixed is not a theoretical value based on the current accounting information but on the growth potential of the companies ie it located a company that I think that in the future will grow a lot that is going to have a lot of benefit and clearly clear Is that if you are going to grow a lot you will have a capacity to generate a profit that in turn the stock will revalue to increase in price here and we are based largely on expectations and eye because many times expectations may be wrong Especially if we do not do analysis ourselves but we trust the general behavior of the market and we demonstrate gregarious behavior ie we do what everyone else does, this happens for example because when there are bubbles in the case of the corporate bubble Technological for example of the real estate bubbles of the real estate companies or real estate assets what happens is that there are some expectations and everyone goes up to the car and clear that as if there is not behind a serious analysis as clear then it can happen that the bubble because It is swelling too much and in the end because then explode in any case these are the two most important fundamental analysis strategies that there are that.
We must consider and well this is all that we are going to see from fundamental analysis since the course is going to focus on the in the technical analysis.