Tuesday, March 19, 2013

Lesson 2-Fundamental Investment



             A Fundamental Investment is a an investment that will give ROI in the long run,is much more safe but does require you to have some capital in order to invest.The first to give a definition on this subject was Benjamin Graham who thought his best student Warren Buffett in : The Inteligent Investor


that in order to establish the value of an investment(in order to make a fundamental investment) you need
to look at the following factors:

  • what is the business ROI and does it have low DEBT?
  • look for good companies that are undervalued
  • what is the company's defense system on the market an is it sustainable over a 5-10 years?
  • only invest in businesses you understand and are predictable to you
  • do you trust the people that manage that company?

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