I know, most of you would have expected me to dig into the financials of a company first. However, I have explicitly chosen to write the first article on fundamental stock analysis about the P/E ratio. The P/E ratio stands for Price-to-Earnings Ratio, and might is also referred to as PER.
The P/E ratio measures the price paid per share relative to the earnings on that share, or the Earnings Per Share. The P/E ratio is expressed in years. As such, having a P/E ratio of 8 means that if I …

Many books and websites write about analyzing stock performance, fundamental analysis and financials. However, many forget to include where to find all this information. I thought it would be logical to first write about the various resources available, before digging into the details of fundamental analysis.
Official annual / quarterly reports
If you want to know more about a company, the first place you might think of are official publications of that particular company. This usually includes the annual and quarterly reports. The main benefit of such reports is that they are …

I consider long-term investing in stocks/shares as a crucial element of building wealth; in fact, you will most probably find this confirmed by most personal finance blogs on the internet. This also brings a number of interesting questions, such as how we can pick the best investment opportunities, and on what do we base our investment decisions. In the next few weeks, I intend writing a number of articles, focussed on how to analyze company stocks and investment pportunities.
Currently, there are two main methodologies for analyzing and possibly predicting the …