Investor Bill Ackman has produced an excellent commentary on the basics of fundamental analysis and investing. Starting with a basic lemonade stand he goes through the importance of balance sheet and income statement analysis and how it all ties back into understanding how investing in stocks should be done.
Unfortunately, the problem for most individuals is “short-term-ism”as this type of fundamental and investing view requires a long term holding period which ignores the short term movements of the market. History has shown that individuals do very poorly at true long term investing.
Nonetheless, this is a terrific starting point for understanding the basics of how to read a financial statement and understanding what the various data points actually mean.
After having been in the investing world for more than 25 years from private banking and investment management to private and venture capital; Lance has pretty much “been there and done that” at one point or another. His common sense approach has appealed to audiences for over a decade and continues to grow each and every week.
Lance is also the Chief Editor of the X-Report, a weekly subscriber based-newsletter that is distributed nationwide. The newsletter covers economic, political and market topics as they relate to the management portfolios. A daily financial blog, audio and video’s also keep members informed of the day’s events and how it impacts your money.
Lance’s investment strategies and knowledge have been featured on Fox 26, CNBC, Fox Business News and Fox News. He has been quoted by a litany of publications from the Wall Street Journal, Reuters, The Washington Post all the way to TheStreet.com as well as on several of the nation’s biggest financial blogs such as the Pragmatic Capitalist, Zero Hedge and Seeking Alpha.