The principles to successful stock investing are simple and straightforward. Master these few basic principles and you will master the stock market.

Basic Principles

In the preceding report, we give the three most basic principles to successful stock investing. But if we had to reduce stock investing down to one simple rule it would be this: just buy good companies.

Some might say this approach is too simple. The market prices all this “good” information in already and it is not sufficient just to seek out and favor good companies. Investors have to be one step ahead of the market and factor in how the market perceives these good companies.

The people who believe this nonsense are wrong. They are making stock investing more complicated than it needs to be.

You will be amazed at how you can find outstanding stock investments by simply finding outstanding companies. We will
convince you of this by doing exactly what we claim is possible.

Furthermore, there is no mystery about how to spot good companies. There is a litany of simple, straightforward, and proven, financial statistics that brilliantly and reliably reveal these good companies. These are the “Fundamentals.”

Below are three powerful reports that explain the three main types of fundamental analysis.

Trend Analysis

Deviation Analysis

Ratio Analysis

There are many fundamentals. We cannot do a full report on each of these insightful numbers. But we can provide a handy cheat sheet that lists the most important fundamental statistics and how to calculate them.  Read the following report cover-to-cover or just refer back to it as a reference whenever you need it.

Cheat Sheet

This process works!  Fundamental analysis is fun, simple and rewarding. We can prove it to you and give you a head start in the process.

We crunch all the most insightful fundamental statistics and combine these numbers into one powerful, unambiguous fundamental rating for each stock. And our ratings perform brilliantly.

 

 

Fundamentals	Rating	Recommendations	Performance Since Inception 7/2/2021
Outstanding	A	Strong Buy	44.3
Above Average	B	Buy	41.9
Average	C	Hold	19.2
Below Average	D	Sell	-13.9
Poor	F	Strong Sell	-11.9

 

If you have a list of stock investments that you are thinking of buying, and would like some insight about their true strength that is based on nothing but the cold, hard numbers (i.e. not opinion, speculation, or hearsay), then our work is for you.

You will be amazed at how those cold, hard numbers usually govern where those stocks ultimately go. You will be dazzled at the power of straightforward fundamental analysis.

There are many terms and concepts that are particularly useful to understand in stock analysis. Below we list some of the key terms in finance and economics. You can study them all now, or reference them when you need them.

Accounting Equation Accrual Basis of Accounting Alpha Altmans Z Scores Arbitrage Pricing Theory Arbitrage Autocorrelation Backwardation Basic Principles Beta Black Scholes Option Pricing Model Bottom Up Analysis Break Even Analysis Business Cycle Buy and Hold Strategy Capital Allocation Capital Asset Pricing Model CAPM Capital Intensive Capitalization Rate Central Limit Effect Cheat Sheet Cobb Douglas Production Function Coefficient of Determination Common Size Financial Statements Common Stock Valuation Constant Growth Model Consumer Price Index Contango Contribution Margin Percentage Correlation Coefficient Cost Estimation Cost Function Cost of Capital Cost Plus Pricing Cost Volume Profit Covariance Defensive Stocks Deferred Tax Liability Deflation Demand Function Demand Side Economics Demographic Analysis Derivatives Deviation Analysis Direct Costs Discount Rate Disinflation Dividend Discount Model Dollar Cost Averaging Doubl -Entry Bookkeeping DuPont Analysis Durbin Watson Statistic Economic Profit Economic Value Added

Economies of Scale Economies of Scope Efficient Market Hypothesis EMH Efficient Portfolio Elasticity of Demand Equity Risk Premium Exponential Smoothing Fed Model Federal Funds Rate Federal Reserve System FIFO Financial Accounting Financial Accounting Standards Board Financial Analysis Financial Leverage Financial Ratio Analysis Financial Ratios Financial Statement Analysis Fiscal Policy Fixed Costs Free Cash Flow Fundamental Analysis Fundamental Beta GDP Price Deflator Geometric Return Generally Accepted Accounting Principles Gross Domestic Product Growth at a Reasonable Price Growth Investing Horizontal Analysis Index Investing Industries Inflation Internal Rate of Return Intrinsic Value Investment Philosophy Investment Strategy Jensen Index Labor Intensive Laffer Curve Law of Large Numbers Law of Diminishing Marginal Return Leading Economic Indicators Lease LIFO Linear Programming Macroeconomics Managerial Accounting Marginal Analysis Marginal Costs Marginal Product Marginal Rate of Technical Substitution Marginal Revenue Market Risk Premium

Microeconomics Monetary Policy Multiple Discriminant Analysis National Bureau of Economic Research National Income Accounting Net Interest Margin Net Interest Spread Net Present Value Normal Distribution Off Balance Sheet Entity Off Balance Sheet Financing Open Market Operations Operating Lease Operating Leverage Opportunity Costs PEG Ratio Percentage of Sales Method of Financial Forecasting Pooling of Interests Method Preferred Stock Pro Forma Financial Statements Product Financing Arrangements Production Function Purchase Method Quadratic Programming Quality of Earnings Quantity Theory of Money Ratio Analysis Regression Analysis Reporting Tricks Research and Development Financing Arrangements Returns to Scale Sale of Receivables with Recourse Sectors Security Market Line Sharpe Index Standard Deviation Stock Fundamentals Supply Side Economics Systematic Risk T Statistic Technical Analysis Term Structure of Interest Rates Top Down Analysis Trend Analysis Treynor Index Value Investing Variable Costs Variance Analysis Vertical Analysis Working Capital Yield Spread Z Score