Do I Need to Hire a Fundamental Analyst?

[Tim Smith]

i once again want to say this is not so much trading in my consideration but more so investing

Ah well, if you're talking about investing rather than trading you would certainly be an idiot to ignore fundamental analysis and dismiss it as trash !

All the consistently successful investors I know are most certainly only consistent because they have taken the time and effort to consider the fundamentals.

 

[systematictrader]

DO I NEED TO HIRE A FUNDAMENTAL ANALYST?


If you want to buy the company, go with FA.
If you want to but the stock, go with TA.

excuse my fundamental and acronym lack of knowledge,, but what does FA and TA mean?

 

[Tim Smith]

excuse my fundamental and acronym lack of knowledge,, but what does FA and TA mean?

FA = Fundamental Analysis
TA = Technical Analysis

 

[systematictrader]

Ah well, if you're talking about investing rather than trading you would certainly be an idiot to ignore fundamental analysis and dismiss it as trash !

All the consistently successful investors I know are most certainly only consistent because they have taken the time and effort to consider the fundamentals.

tim no need to be rude,,, what iam asking is in this specific strategy do u believe there is a need to bring someone on who is a fundamental analyst and whether it adds value?

 

[systematictrader]

FA = Fundamental Analysis
TA = Technical Analysis

lolz,. that was easy

 

[learner2007]

the key question iam asking here is if a fundamental analyst would add value in the future by analyzing for example fundamental values such as probability of dividend continuing, probability of company surviving, probability of company cutting dividend,,,p/e ratio etc

A Security Analyst has access to all available information, and can answer your questions to the best of his ability about what may or may not happen in the future regarding the company. But any SA will admit that FA does not tell you when to buy or sell the stock. And if you ignore the timing aspect, you may very well be disappointed, and will then fire your FA!

 

[systematictrader]

Ah well, if you're talking about investing rather than trading you would certainly be an idiot to ignore fundamental analysis and dismiss it as trash !

All the consistently successful investors I know are most certainly only consistent because they have taken the time and effort to consider the fundamentals.

the point iam trying to get at is that i contribute heavily to my 401k and ira from my trading of futures and forex as well as my sales job,,,,,, i believe in buy and hold and i believe it could be improved upon slightly by following simple strategies and discipline,,, there is a limit to what i can do,,, i cant spend enough time learning fundamental analysis for stocks cuz my main time and energy is spent in forex and futures where i trade systematically thus in stocks iam trying to be a bit less than passive investors

 

[systematictrader]

A Security Analyst has access to all available information, and can answer your questions to the best of his ability about what may or may not happen in the future regarding the company. But any SA will admit that FA does not tell you when to buy or sell the stock. And if you ignore the timing aspect, you may very well be disappointed, and will then fire your FA!

when to buy and sell have already been established for me which is buy at 6% dividend rate,, sell at 18% ,,,,

what iam looking out of an FA is to clarify certain things since iam at zero when it comes to any fundamental analyis,,,
here is an example to make this simpler,,,

Frontier communications for example now is paying 12% dividend and supposedly its NOT sustainable,,, office depot and sears roebuckis supposedly heading to bankruptcy for sure,,, how do we validate these claims via the balance sheet, income statement,,, etc

 

[learner2007]

when to buy and sell have already been established for me which is buy at 6% dividend rate,, sell at 18% ,,,,

what iam looking out of an FA is to clarify certain things since iam at zero when it comes to any fundamental analyis,,,
here is an example to make this simpler,,,

Frontier communications for example now is paying 12% dividend and supposedly its NOT sustainable,,, office depot and sears roebuckis supposedly heading to bankruptcy for sure,,, how do we validate these claims via the balance sheet, income statement,,, etc

A Security Analyst at a broker has access to all available information. But if you just ask the opinion of someone who uses FA, he will not have all the information needed to give you the best possible opinion. And even if you could speak to 10 SA's, you'd surely get a mixed bag of answers. I know a number of ex-SA's who say just this. The SA's handicap is trying to predict what's going to happen 6 or 12 months down the road, which even the company itself often can't get right!

 

[Tim Smith]

Frontier communications for example now is paying 12% dividend and supposedly its NOT sustainable,,, office depot and sears roebuckis supposedly heading to bankruptcy for sure,,, how do we validate these claims via the balance sheet, income statement,,, etc

Well that's surely the point ?

If you don't know how to read balance sheets, do DCF analysis etc. etc. then yes, you'll need to hire someone to help you ?