Benjamin Graham is widely considered the Father of Fundamental Analysis. Of course, Warren Buffet is his most famous disciple.
Fundamental analysts attempt to study everything that can affect the security’s value, including macroeconomic factors (like the overall economy and industry conditions) and individually specific factors (like the financial condition and management of companies).
Graham has authored ‘Security Analysis’ & ‘The Intelligent Investor’ which are considered cornerstone books in the field of Investments, Analysis for Investors.
Here are Graham’s 14 Investment Points, the crux for successful investing :
1.Be an investor, not a speculator.
2.Know the asking price.
3.Search the market for bargains.
4.Determine if the stock is undervalued.
5.Regard corporate figures with suspicion.
6.Don’t stress out.
7. Don’t sweat the math.
8.Diversify among stocks and bonds.
9. Diversify among stocks.
10. When in doubt, stick to quality.
11. Use dividends as a clue for success.
12. Defend your shareholder rights.
13. Be patient.
14. Think for yourself.