The term "fundamentals" is often used when describing what your
investment club needs to evaluate to decide on an investment. I
wonder how often you stop to consider what that really means. If you
are determining what stock to purchase or sell based on it's
fundamentals, it means you are making your decision by evaluating
it's business. This is done by looking at information from it's
financial reports. Some of the types of fundamental information you
might look at are things like revenue growth, net margin and Return on
Equity. If a company management can operate their business in a way
that steadily improves on these fundamentals, you have probably
chosen a good company to invest in. If you purchase their stock at an
attractive price, your investing success should follow along with the
companies business success.

You can also choose stocks to invest in for other reasons. These
include a good "story" about why they may do well in the future or an
attempt to determine the psyche of the market and it's affect on a
stocks price. Both these factors certainly do impact stock prices
but they are much harder to learn to analyze and use to make
predictions.

You can go a long way toward choosing good investments by spending
your time learning about a companies business and looking at a few of
it's fundamentals.

Mark Robertson at ManifestInvesting makes projections about the return
you might expect from a stock based on an estimate of three
fundamentals. They are future revenue growth, future net margin and
future Average P/E ratio. It is very interesting to look at your
investments and compare your estimates of these fundamentals with what
ManifestInvesting has used. Going through this thought exercise
will help you learn more about the management of the company you have
invested in.

If you're interested in learning more about how Mark makes his
fundamental estimates, you might be interested in a free webinar he
is doing tonight at 9PM EDT. You can register to join using this
link.

https://www2.gotomeeting.com/register/345539331

Hope to see you there!

--
Laurie Frederiksen
Invest with your friends!
www.bivio.com

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