One of the main advantages of fundamental analysis is that it provides a great overall view of a company’s worth 💡
By analyzing financial statements, investors can gain insights into a company's revenue growth, earnings, cash flow, and debt levels 💰
Fundamental analysis also allows investors to compare a company's financial metrics to its competitors and industry benchmarks 🔍
This can help investors identify undervalued or overvalued companies in the market 💸
And, valuation is super important when it comes to investing!
Another advantage of fundamental analysis is that it is a long-term strategy.
Unlike short-term traders, fundamental investors focus on the long-term prospects of a company 📈
This means fundamental investors are less likely to be influenced by short-term market fluctuations 💪
Long-term investment is generally safer, more practical and stays truer to the real value of a company. 🥳
Overall, fundamental analysis enables investors to make informed investment decisions based on a company's financial health rather than relying on speculation or market trends 💼
Decisions based on evidence and existing financial health lead to practical decisions. 🧠
And as we learned before, practical decisions help reduce risk and make you a better investor overall 🚀
