Value Investing with Business Ratios
The difference between novice and sophisticated investing is the level of understanding business fundamentals. Fundamentals are deeply rooted with awareness of business ratios.
Every ratio has its inherent flaws; however, knowledge of proper application provides an investor with confidence. Never use a single business ratio to make a buy/sell decision with a security. Wise investors utilize no less than a dozen business ratios to build investment models.
This book walks the reader through the five major groups of business ratios. Each group’s individual ratios are explored in detail including illustrations, examples and formulas.
The final section illustrates how to create a decision model. As evidence that business ratios are essential to building sophisticated decision models, look at how this site’s Value Investment Fund has performed over the last three and half years. Act on Knowledge.