Top positive review
I like this thorough study from Stephen Penman very much
on 15 October 2017
I like this thorough study from Stephen Penman very much. As a guideline for fundamental analysis it is indispensable. I simply cannot understand how an investor in all seriousness can kling to the so called "technical analysis". It seems to me that there is every reason to ask yourself if the market price of the moment actually represents the real value of the stock. The "abracadabra" of the technical analysis does not give that answer at all. Recently I also bought Penman's other text "Accounting for Value" where he further develops the same basic ideas which we find in his "Financial Statement analysis and Security Valuation" and where he underlines the fundamental truth that buying a stock is not to be considered as buying a lottery ticket. You buy a fraction of a business. How then can you judge on the opportunity of your investment if you stubbornly ignore the financial statements of the business?