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Learning to Invest / Reading Financial Statements

URL:  https://boards.fool.com/rainmaker2-wrote-quotcan-anyone-offer-a-clear-12343346.aspx

Subject:  Re: Due Diligence Date:  4/5/2000  2:34 AM
Author:  madmarv Number:  1038 of 3987

RainMaker2 wrote:
"Can anyone offer a clear procedure for going about this task? Essentially what I'm asking is how does one go about evaluating a company/stock--from the
beginning to the final decision to buy or not to buy (not to get cheesy w/Will)...."


It really depends on what investing philsophy you favor. The easiest strategies are mechanical (the Foolish Four for example), they simply plug into the data and out spits your answer w/o no independant thought going into DD. The other end of the spectrum is the Rule Breaker type of analysis (i.e. where the numbers are weak and future predictions uncertain).

Found this link on the Foolish 8 board, I've found it very useful.

http://boards.fool.com/Message.asp?id=1030012000682000

You don't need to apply it strictly to F8 type of companies, it works well w/ most companies available to the public.

Marv
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