Fundamental Analysis: Qualitative Approach

Here are the things you need to look at when doing your investment analysis.

Qualitative Investment Analysis

1. Business model:

2. Competitive advantage:

3. Management’s background:

4. Business ethics:

5. Corporate governance:

6. Industry:

“If you know the enemy and know yourself, your victory will not stand in doubt; if you know Heaven and know Earth, you may make your victory complete.”

7. Minority shareholders:

8. Share transactions:

9. Related party transactions:

10. Salaries paid to promoters:

11. Operator activity in stocks:

12. Shareholders:

13. Political affiliation:

14. Company Personnel/Promoter lifestyle

Bottom line

  • There are two things to look at when you’re doing your fundamental analysis, the qualitative and quantitative aspects of the company.
  • This qualitative list is not comprehensive, but it touches on the main concerns that one should raise when analyzing a company.
  • It is imperative for you to also do your quantitative analysis to get the best out of your investment decisions.
  • In fact, it is better if you can use both fundamental and technical analysis methods in your investment, i.e., by using technical analysis to make a short-term investment decision and fundamental analysis for long-term decisions.

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None of the material above or on our website is to be construed as a solicitation, recommendation or offer to buy or sell any security, financial product or instrument. Investors should carefully consider if the security and/or product is suitable for them in view of their entire investment portfolio. All investing involves risks, including the possible loss of money invested, and past performance does not guarantee future performance.

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