How to Value Stocks: Security Analysis

Introduction: Security Analysis

How to Value Stocks

Investing, like marriage, isn't something that should be entered into lightly. You wouldn't get married on a first date, would you? Ok, maybe some of you would, but that's not really very Foolish. Before you marry... er, I mean invest in a company, there are more than a few things you need to know about it.

Randy Befumo, the former TMF Templr, wrote this five-part series in order to aid readers in valuing publicly traded companies. Randy presents his four dimensions of security analysis by using 11 rules. By following these simple rules, investors should be able to increase their odds of achieving market-beating returns over the long term.

Be sure to read the last article in the list box, as well. Although not part of the initial series, it does contain some good sources for company information. Randy's first rule says to understand that when you invest in stock, you invest in a business.

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