Basic Differences between Fundamental Analysis vs Technical Analysis
Fundamental Analysis vs Technical Analysis “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” - Benjamin Graham Fundamental analysis is a method of valuing how much an investment is worth based on its intrinsic value. Company stocks are valued for their businesses, which include their assets, cash flow, growth potential, intellectual property, and anything of value in the market . Fundamental analysis seeks to make timing decisions on when to buy and sell by quantifying the value of a company based on the variance between the current stock price and the total value of the underlying company. A fundamental investor wants a good price on the value of a company now believing that the stock price will go up more in the future as the true value is priced in more over time. A fundamental investor can look to buy a stock with high potential future growth that is not accurately priced in currently or look to buy a good company at a great pri...