Module 3   Fundamental Analysis (Video Series)Chapter 1

Introduction to fundamental analysis

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1.1 -Introduction

Fundamental Analysis (FA) is a holistic approach to studying a business. When an investor wishes to invest in a company for the long term (say 3 – 5 years), it becomes essential to understand the business from various perspectives.

Let’s learn more about it in this video.

In the following video, we will learn about the mindset of an investor.

We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.


Key takeaways from this chapter

  1. Fundamental Analysis is used to make long term investments.
  2. Investment in a company with sound fundamentals creates wealth.
  3. Using Fundamental Analysis, one can separate an investment-grade company from a junk company.
  4. All investment-grade companies exhibit a few common traits. Likewise, all junk companies exhibit common characteristics.
  5. Fundamental Analysis helps the analysts identify these traits.
  6. Both Technical Analysis and Fundamental Analysis should coexist as a part of your market strategy.
  7. To become a fundamental analyst, one does not require any particular skill. Common sense, basic mathematics, and a bit of business sense are all that is needed.
  8. A core-satellite approach to capital allocation is a prudent market strategy.
  9. The tools required for FA are generally fundamental; most of these tools are available for free.

20 comments

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  1. Laxman Rawal says:

    Was checking the website to clarify a topic and saw these new amazing video based modules. Will help all those people who are lazy to read (Sometimes even me 😅🙈)
    So happy and once again Zerodha and team taking the financial awareness to the next level in India.
    So so happy to see you karthik sirji 🙂 and Prateek.

    Thank you Zerodha

  2. Udit Agrawal says:

    I’ve really loved this new way zerodha come up for teaching us! Thanks zerodha for adding one more thing in my everyday’s to-do list.
    I’ll refer this to some of my lazy friends who are damm lazy to even read a single card of the course.
    Thank you Karthik sir and all other members of his team to make investing exciting as hell!

  3. Aravind Singh says:

    Finally!!!

  4. kartheek says:

    i am a 17 year old kid ,read this fundamental analysis module its easy to understand and i am feeling exciting to watch this video [even sometimes i am lazy to read].THANK YOU KARTHIK SIR

  5. Harmeet singh says:

    We Indians need more and more knowledge about our stock market as our market is a gold mine with highest potential of the companies

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