I am no finance guy. Just started to get basic understanding of how to make use of financial statements to understand the company’s health before making any investment.
I am wondering if people do study financial statements, or rely on their feeling.
Would you like to share your decision-making process?
I am hoping to learn more of this field.
Re: Looking at financial statements before investing
Studying financial statements is a complete subject called "Analysis of Financial Statements". Yes by studying financial statements via various ratios and calculation can fetch information about company's 'financial health' but you can not solely base your decision on financial position of a company. The strategic management , business policies , SWOT , Market study , Economic study etc etc all comes into play.
I don't actively participate in stock buying and selling but have invested in couple of IPOs all paid off well. Some of my friends do that but it's risky ........never risk too much on it !
For theoretical learning take some courses and for practical learning assist someone who is a player in stock market !