Recommend Fundamental Analysis Book

[Renegade]

Hi Everyone,

I'm pretty new to Shares Investing and over the last 6 months I've been more of a observer rather than a contributor on this forum and have found it a great help in learning about shares so I was wondering if anybody got any recommendations on books about Fundamental Analysis. Most of the recommendations I see on are on TA or share trading/investing in general and while some of these cover certain aspects of Fundamental Analysis they do not give a indepth look.

I'm a long term investor so I'm interested in getting to understanding of Financial Reports and state of the company and determining whether SP is under or over valued and just being able to confidently research a company.

Thanks in advance to those who response.

Cheers Renegade

 

[Knobby22]

"The numbers game" by Trevor Sykes is a good start.
Good solid facts with some of the traps you can fall into.

If I were you I would Ignore all the Buffett religion books for now.

 

[Realist]

If I were you I would Ignore all the Buffett religion books for now.

Hahaaa, Buffet without question is the all time great, along with his mentor Ben Graham. His principles are as sound as you can get.

A few newbies here are enjoying a bull market at the moment and think they know it all cause their shares went up.

 

[It's Snake Pliskin]

Hahaaa, Buffet without question is the all time great, along with his mentor Ben Graham. His principles are as sound as you can get.

A few newbies here are enjoying a bull market at the moment and think they know it all cause their shares went up.

Actually Ben Graham was better at Spanish and writing than investing I heard.

 

[Realist]

Actually Ben Graham was better at Spanish and writing than investing I heard.

The 2nd richest man in the world disagrees.

Hmmm, who to believe - Snake or Buffet....?

 

[Knobby22]

I am not saying Buffet is not a great investor, but to learn how to do it you need practical experience in the modern day. Grahams stuff is horribly dated. The world has changed a lot since then.

I called it a religion because it has so many newby prophets.

Anyway what do you recommend for a person wanting to become an investor and able to understand modern annual reports and the traps they contain?

 

[ghotib]

"Analysing Company Accounts" by Martin Roth (Wrightbooks). It's written for non-accountant investors; looks at what goes into ratios and gives some ideas of how managements can (legally) manipulate the accounts.

Buffet and Graham also talk about traps in company accounts, but their examples are all American (DUH!!) and there are enough differences in law and practice that I feel sort of insecure with them. However Brian McNiven's "A Wonderful Company at a Fair Price" discusses intrinsic valuation for Australian listed companies. I find him a bit harder to read than Buffet, but that's not a bad thing - makes me think a bit harder too, and more directly applicable.

I also have my sister's course notes for an ASX course called Analysing and selecting shares. She's thrived on dividends for 10 years and she reckons this was all she needed - not sure I believe her, but the course seems like a good overview.

Have fun and good luck,

Ghoti

 

[smoothsatin]

When it comes to fundamentals you could argue that you need macroeconomic skills as much as stock analysis skills. A well rounded investor will be fluent in macroeconomics its consequences on assets prices/evaluations. Although i havent read it (my original trade was as an economist), i believe "if its raining in brazil buy starbucks" would cover some issues....

 

[Realist]

I am not saying Buffet is not a great investor, but to learn how to do it you need practical experience in the modern day. Grahams stuff is horribly dated. The world has changed a lot since then.

I called it a religion because it has so many newby prophets.

Anyway what do you recommend for a person wanting to become an investor and able to understand modern annual reports and the traps they contain?

I still recommend Graham, his principles still apply today.

Little has changed in the past 50 years.

 

[Knobby22]

"However Brian McNiven's "A Wonderful Company at a Fair Price" discusses intrinsic valuation for Australian listed companies. I find him a bit harder to read than Buffet, but that's not a bad thing - makes me think a bit harder too, and more directly applicable.


Ghoti

I have heard of this book, will try to buy a copy.

 

[Realist]

" However Brian McNiven's "A Wonderful Company at a Fair Price" discusses intrinsic valuation for Australian listed companies.

Sounds like a poor man's Ben Graham..

 

[Renegade]

Cheers Everyone, I think I'll head down to Dymocks at Lunch and have a look at these books.
Had a look at "The Numbers Game" which seemed like a good starting point, easy to understand plus very partical as it uses existing Australian Company finanical reports as examples.

Cheers
Renegade

 

[ghotib]

Is it lunchtime yet?

2 more things.

1. I'm just getting into Ian Huntley's "Retire Rich Retire Early". Hate the title, but the book talks sense.

2. Nothing against Dymocks, but let's remember Aussie Stock Forums online bookstore. A very easy way to contribute a bit to the costs of this site.

Cheers,

Ghoti

 

[Renegade]

Nothing against Dymocks, but let's remember Aussie Stock Forums online bookstore. A very easy way to contribute a bit to the costs of this site.

Cheers,

Ghoti

Good point.....I still like to go into a book store and flick through the book to get a idea of what it is like. I tend to do that a lot with things, I research online go to a store to get a visual and then find the cheapest price whether that is instore or online. This is a great forum and it has given me a lot of information I've needed so it makes sense "give back" something seeing as I've received so much.

Cheers
Renegade

 

[Julia]

A few newbies here are enjoying a bull market at the moment and think they know it all cause their shares went up.

So we're still in a bull market are we, Realist? I'm pretty sure I read one of your posts in another thread which declared that the bull market had ended some months ago.

May I politely suggest that once in a while you pull your head in and remember that once you too were a "newbie" (some would say that description applies still but I wouldn't be so unkind), and that making deprecating comments about said newbies does neither you nor them any favours.

There is much to be said for basic good manners.

Julia

 

[choppol]

I still recommend Graham, his principles still apply today.

Little has changed in the past 50 years.

I agree with Realist. Every great investors have a basic understanding of investing and surround that with experience. Graham and Buffet teaches basic fundamental investing and from there the sky is the limit for anyone.

BG and WB is a classic investor who not just thinking of making a quick buck but knowing 4, 5 10 years it is going to reflect. Think long term.

There's a survey awhile ago that proved that long term investment makes more money than short term trading.