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Focus on the fundamentals of the companies from "summary" of The Little Book That Beats the Market by Joel Greenblatt
The key to successful investing lies in focusing on the fundamentals of the companies. This means looking beyond the daily fluctuations of the stock market and instead concentrating on the underlying financial health of the businesses in which you are considering investing. By fundamentals, we mean factors such as earnings, cash flow, debt levels, and return on invested capital. These are the metrics that truly matter when evaluating a company's long-term prospects. It is important to remember that the stock market can be volatile and unpredictable in the short term, but over the long term, stock prices tend to reflect the underlying fundamentals of the companies. The beauty of focusing on fundamentals is that it allows you to cut through the noise and hype that oft...
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