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The Ultimate Investing Guide

In this in-depth guide you’ll learn everything you need to know about investing. Investing is a long term strategy based on fundamentals (reading income and balance sheets containing financial information about the company). Fundamentals are used to determine if the company you want to buy shares from is “healthy” or a “worthy” purchase. With investing, you focus on the intrinsic value rather than the current stock price. As Warren Buffet explained it once:

Penke

“You don't buy a farm based on whether or not it is going to be worth more tomorrow or a week from now. You buy it as a business -- for the cash flows it will generate.”

It takes a lot of time to understand every detail of fundamental data. When you are day trading, you are staring at charts and technical indicators all day. When you are investing, you are looking at income statements, the news, insider trading and all other financial data trying to figure out if the stock of the company you want to buy is healthy and has a future. You don’t only need to know the insights of a single stock, you also need to know the data of all the companies in the same industry.

You can imagine that investigating all the details can be a daunting task. Without doing proper research, investing is a bad idea. Most investors lose money in the long term. Mostly because not doing enough and proper research and making decisions based on emotions rather than fundamentals. In this guide I will take you to the foundation of (value) investing and making the right decisions based on the data you have available.

After reading this guide you have a fundamental basis of all important aspects of investing combined with some emotional and trading strategies. This guide is a follow up from my basic trading and investing guide where I introduce various concepts that are crucial to know. If you are truly new to investing, you should read that guide first.

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