Information is the fuel that drives all kinds of investing decisions
for investors like Michael T Haas, minute-to-minute option traders,
long-term investors, and everyone in between.
Today, most people in Western countries are connected to the Internet. The Internet has become an integral information source for investors. It is especially important for those who trade on the stock market but also plays its role in value investing, even though it is not as important to long-term investors.
The fundamental principle of investing says that no two investors are alike. Different investors have different goals, styles, capabilities, and resources. Investing is a combination of art and science. In all kinds of investing, investors look at quantifiable and non-quantifiable facts and data and interpret them according to their experience and opinions. The quantifiable part of investing is relatively easy. It takes numbers, facts, and formulas to measure value. The art of investing is to take all that information and make judgments based on it.
The combination of art and science is what makes markets around the world work. Without the unmeasurable arts part, all the prices would simply follow a set of formulas and there would be no need for human judgments or opinions.
There is no single formula for any kind of investing, including value investing. Further, just like with many other things in life, the law of diminishing returns also applies to investing. Sometimes investors can suffer from analysis paralysis and too much information can be a bad thing. Trying to find a deal at the lowest possible price can be compared to driving around town for several hours trying to find a gas station that sells gas for a penny cheaper than anyone else. It just doesn’t make sense. If you are just getting started with value investing, choose several resources that you find useful and use them on a regular basis.
All investors need information about the financial and operating performance of the businesses that they invest in. This information is the foundation of value-based analysis. Value investors usually look at current performance and also at trends and challenges that are likely to influence this performance in the future. Facts about a business are usually available from the business itself. You can also use a number of third-party providers that get their information from external sources to verify the numbers that the business provides. If you are doing due diligence for a very small business, hiring an experienced business accountant to do an independent analysis may also be a good idea.
Financial statements provide information about assets, liabilities, growth, and earnings of a business during a certain period. The balance sheet gives you a snapshot of assets, liabilities, and business net worth. There are also a number of other statements that investors like Michael T Haas look at to get a feel for key aspects of business performance.
Today, most people in Western countries are connected to the Internet. The Internet has become an integral information source for investors. It is especially important for those who trade on the stock market but also plays its role in value investing, even though it is not as important to long-term investors.
The fundamental principle of investing says that no two investors are alike. Different investors have different goals, styles, capabilities, and resources. Investing is a combination of art and science. In all kinds of investing, investors look at quantifiable and non-quantifiable facts and data and interpret them according to their experience and opinions. The quantifiable part of investing is relatively easy. It takes numbers, facts, and formulas to measure value. The art of investing is to take all that information and make judgments based on it.
The combination of art and science is what makes markets around the world work. Without the unmeasurable arts part, all the prices would simply follow a set of formulas and there would be no need for human judgments or opinions.
There is no single formula for any kind of investing, including value investing. Further, just like with many other things in life, the law of diminishing returns also applies to investing. Sometimes investors can suffer from analysis paralysis and too much information can be a bad thing. Trying to find a deal at the lowest possible price can be compared to driving around town for several hours trying to find a gas station that sells gas for a penny cheaper than anyone else. It just doesn’t make sense. If you are just getting started with value investing, choose several resources that you find useful and use them on a regular basis.
All investors need information about the financial and operating performance of the businesses that they invest in. This information is the foundation of value-based analysis. Value investors usually look at current performance and also at trends and challenges that are likely to influence this performance in the future. Facts about a business are usually available from the business itself. You can also use a number of third-party providers that get their information from external sources to verify the numbers that the business provides. If you are doing due diligence for a very small business, hiring an experienced business accountant to do an independent analysis may also be a good idea.
Financial statements provide information about assets, liabilities, growth, and earnings of a business during a certain period. The balance sheet gives you a snapshot of assets, liabilities, and business net worth. There are also a number of other statements that investors like Michael T Haas look at to get a feel for key aspects of business performance.
