entire market, to the several industry groups, down to the individual companies,
fundamentalists scrutinize every single detail in order to gain the best
understanding available. Although incredibly time-consuming, the
fundamentalists' intense work ethic, makes them, as they would have it, the most
knowledgeable and most qualified analysts among their peers.
The advanced nature of fundamental analysis often makes the method an
unlikely tool for beginning investors. Industry groups and the companies they
contain differ widely from their counterparts in the rest of the market.
Fundamentalists need to treat each industry group differently and address the
finer nuances that each possesses. Fundamentalists must use different
techniques for each group and company that they invest with. Based on models
that they produce using their research, fundamentalists use their techniques to
produce the results they are looking for and, ultimately, gain a profit.
Just as with any other market analysis strategy, fundamental analysis has
its relative weaknesses. As has previously been contended, fundamental
analysis is a very time-consuming process and requires the utmost diligence.
The extensive research and dedication to the practice is met with no guarantee
of a profit. Though not only true for fundamental analysis, the personal bias and
viewpoint of any analyst will show through in his or her results.
Shortsightedness, on the part of the investor, can prevent him/her from making
the best and most profitable decision. Caution is a necessary virtue that cannot
be ignored when involved with such high-stakes dealings. Fundamental analysis
is probably not for anyone looking to make a quick plunge into the market for a
8profit; rather, fundamental analysis appeals mainly to those seeking long-term
and sound investments