Fundamental Analysis
From Dickinson College Wiki
- The Fundamental Analysis is an investment strategy which involves examining a company through it's operations and financial condition. The fundamental analysis only takes into consideration the variables that are directly related to the company itself and does not focus on the overall state of the market. This is often referred to as "the cornerstone of investing."
- Castle in the Air Theory
- This theory analyzes how the crowd of investors will act in the future and the tendency in periods of optimism to build their hopes into castles in the air. Investors try to beat the gun by estimating what investment situations are most suceptible to public castle building and then buy them before the crowd.