Course index:<\/p>\n\n\n\n
- \n
- Basic Concepts of Money and Personal Finance<\/strong><\/a>
<\/strong>Introduction to the value of money, the importance of saving, and spending control.<\/li>\n\n\n\n- Budgeting and Financial Planning<\/strong><\/a>
<\/strong>Create a personal budget, manage income and expenses, and set financial goals.<\/li>\n\n\n\n- Inflation and Purchasing Power<\/strong><\/a>
<\/strong>Explanation of how inflation affects the value of money over time.<\/li>\n\n\n\n- Interest Rates and Time in Finance<\/strong><\/a>
<\/strong>Differences between simple and compound interest rates and their importance in investments.<\/li>\n\n\n\n- How to protect your savings. Protect yourself from scams.<\/a>
How to protect your money from the scams that abound today<\/li>\n\n\n\n- Basic Savings Instruments<\/strong><\/a>
<\/strong>Explanation of savings accounts, term deposits, and how they work.<\/li>\n\n\n\n- Introduction to the Stock Market<\/strong><\/a>
<\/strong>Basic concepts of the stock market and its role in the global economy.<\/li>\n\n\n\n- Actions: What They Are and How They Work<\/strong><\/a>
<\/strong>Explanation of stocks, types (common and preferred), and how to invest in them.<\/li>\n\n\n\n- Bonds: What They Are and How They Work<\/strong><\/a>
<\/strong>Differences between corporate and government bonds, and their importance in diversification.<\/li>\n\n\n\n- Risk vs. Return on Investments<\/a>
<\/strong>Concept of risk and how it affects investment choices.<\/li>\n\n\n\n- Diversification and Creation of Basic Portfolios<\/a>
<\/strong>Basic diversification principles to reduce risk in an investment portfolio.<\/li>\n\n\n\n- What is an ETF and How Does it Work?<\/a>
<\/strong>Introduction to ETFs (exchange-traded funds) and how they track market indices.<\/li>\n\n\n\n- What is a Mutual Fund?<\/a>
<\/strong>An explanation of mutual funds and their benefits for beginners.<\/li>\n\n\n\n- Financial education for the family<\/a><\/strong>
All the information you need to make ends meet.<\/li>\n\n\n\n- Economic Cycle and its Impact on Investments<\/a>
<\/strong>How the stages of expansion and contraction in the economy affect investments.<\/li>\n\n\n\n- Growth Stocks vs. Value Stocks<\/strong><\/a>
Learn about different types of actions and what to expect from each one.<\/li>\n\n\n\n- Fundamental Analysis of Stocks <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
<\/strong>Explanation of how to analyze a company's value based on its fundamentals.<\/li>\n\n\n\n- Basic Technical Analysis: Charts and Patterns
<\/strong>Introduction to basic technical analysis tools, such as trend lines and candlestick patterns.<\/li>\n\n\n\n- Options: What They Are and How They Work
<\/strong>Basic concepts of call and put options and their uses in investments.<\/li>\n\n\n\n- Futures: What They Are and How They Work
<\/strong>Introduction to futures contracts and their application in investment and speculation.<\/li>\n\n\n\n- Introduction to Cryptocurrencies
<\/strong>What is digital money, how it was created, and the characteristics of Bitcoin and other cryptocurrencies.<\/li>\n\n\n\n- Blockchain and its Importance in Finance
<\/strong>How the technology behind cryptocurrencies works and their applications in finance.<\/li>\n\n\n\n- Risks in Cryptocurrency Trading
<\/strong>Volatility, fraud, and regulations in the cryptocurrency market.<\/li>\n\n\n\n- Leverage Principles and its Risk
<\/strong>What it means to trade with leverage and the associated risks.<\/li>\n\n\n\n- Investor Psychology and Emotion Management
<\/strong>How emotions influence investment decisions and tips for managing them.<\/li>\n\n\n\n- What is Algorithmic Trading
<\/strong>Basic explanation of the use of algorithms to perform operations in the financial market.<\/li>\n\n\n\n- Financial Analysis of Companies
<\/strong>Introduction to basic financial statements and their interpretation for valuing companies.<\/li>\n\n\n\n- Investing in Commodities: Gold, Oil, and Other Goods
<\/strong>How commodity investments work and their role in diversification.<\/li>\n\n\n\n- Advanced Investment Strategies: Hedging and Derivatives
<\/strong>Introduction to strategies for managing risks through financial derivatives.<\/li>\n\n\n\n- Creating and Managing a Complete Portfolio
<\/strong>Practical application of prior knowledge to build and manage a diversified portfolio.<\/li>\n<\/ol>\n\n\n\n![\"Banner](\"https:\/\/i0.wp.com\/elinversordebolsillo.com.ar\/wp-content\/uploads\/2024\/10\/banner3.webp?resize=851%2C315&ssl=1\" "\\"\\"")
<\/a><\/figure>\n\n\n\nWhen you get into the world of investing, one of the first things you hear is that you need to do your research before buying stocks. There are different ways to do this, but one of the most respected and used is fundamental analysis. This method involves taking a deep look at a company to understand whether its real value is above or below its market value. It's not about guessing or following trends, but rather about studying numbers, businesses, and trends to make smart decisions. <\/p>\n\n\n\n
In this lesson, we'll explore what fundamental analysis is, how it works, what tools it uses, and learn about some of the greats who made it famous, such as Benjamin Graham, Warren Buffett, Phillip Fisher, Peter Lynch, and other prominent value investors. If you want to invest with a solid foundation and not just by intuition, this will be of great interest to you.<\/p>\n\n\n\n
What is fundamental analysis?<\/h2>\n\n\n\n
Fundamental analysis is like taking an X-ray of a company to see its financial health and whether it's worth investing in. Unlike technical analysis, which is based on charts and past price movements (we'll cover this in detail in the next lesson), fundamental analysis focuses on the company's real fundamentals: its earnings, debt, assets, how it manages its business, and the market conditions in which it operates. <\/p>\n\n\n\n
The idea is to determine the company's "intrinsic value"\u2014what it should be worth based on its numbers and prospects\u2014and compare it to its stock price on the stock market. If the intrinsic value is greater than the price, it's a buying opportunity. If it's lower, it's better to pass.<\/p>\n\n\n\n
This method isn't magic or something new. It was born decades ago with investors who wanted to go beyond speculation and base their decisions on concrete facts. Don't worry if you're not a financial expert: fundamental analysis can be learned with practice, and many use it to build long-term fortunes. The key is patience and understanding that you're not looking for quick profits, but rather to invest in companies with a solid future. Let's see how it's done and who perfected it.<\/p>\n\n\n\n
How fundamental analysis works<\/h2>\n\n\n\n
Fundamental analysis begins with an overview of the company. It's not just about looking at the stock price today, but also understanding what it's doing, what market it's in, and how it's doing. For example, if you want to analyze a company like YPF, it's not enough to see if its stock has risen or fallen this week; you need to know if the price of oil is rising, if the company has manageable debt, or if it's expanding its operations.<\/p>\n\n\n\n
Next, you turn to the numbers. Financial reports are the heart of fundamental analysis. The most important are the balance sheet, which shows the company's assets, liabilities, and equity; the income statement, which details profits and losses; and cash flow, which indicates how much money is actually coming in and going out. With this data, you calculate key indicators. For example, the price-to-earnings ratio (P\/E) tells you how much you pay for each peso the company earns. If one company has a P\/E of 10 and another has a P\/E of 30, the former seems cheaper, but you have to consider the context, growth, and outlook.<\/p>\n\n\n\n
Another indicator is return on equity (ROE), which measures how much a company earns from its shareholders' money. A high ROE, such as 151TP3Q or higher, suggests the company is using its capital wisely. You also look at debt: if a company has more debt than assets, it could be in trouble. And you analyze earnings growth: if they grow by 101TP3Q per year, it's a good sign. All of this helps you estimate intrinsic value, which you can calculate with formulas like the discounted cash flow formula or the Graham model, which we'll cover later.<\/p>\n\n\n\n
But it's not all about numbers. Fundamental analysis also considers external factors, such as competition, the country's laws, changes in the economy, or consumer trends. For example, if a technology company like Mercado Libre relies on online sales, it's important to consider how e-commerce is growing in Argentina or if there are new regulations. This makes the analysis a comprehensive process, combining hard data with a bit of judgment.<\/p>\n\n\n\n
![\"Warren](\"https:\/\/i0.wp.com\/elinversordebolsillo.com.ar\/wp-content\/uploads\/2025\/07\/image-png.webp?resize=1024%2C546&ssl=1\" "\\"\\"")
Warren Buffett and Charles Munger, two of the leading figures in Fundamental Analysis<\/figcaption><\/figure>\n\n\n\n Advantages and disadvantages of fundamental analysis<\/h2>\n\n\n\n
The beauty of fundamental analysis is that it gives you a solid foundation for investing. You don't rely on rumors or market movements, but on verifiable facts. If a company has good fundamentals, such as growing earnings and low debt, it's more likely to deliver long-term results. It also protects you from bubbles: if a stock's price is inflated by euphoria, but the numbers don't justify it, the analysis warns you not to buy.<\/p>\n\n\n\n
But it has its challenges. First, it takes time and effort. It's not like looking at a chart and making a five-minute decision; you have to read reports, understand balance sheets, and follow the news. Second, the data can be outdated or manipulated, especially in less regulated markets like Argentina. Third, intrinsic value is an estimate: no one knows for sure how much a company is worth, and you can be wrong. That's why many people combine fundamental analysis with other tools, such as technical analysis, to get a more complete picture.<\/p>\n\n\n\n
Benjamin Graham: The Father of Fundamental Analysis<\/h2>\n\n\n\n
If there's one name that shines brightly in the history of fundamental analysis, it's Benjamin Graham. Born in London in 1894 and raised in the United States, Graham is considered the father of value investing, a philosophy that uses fundamental analysis to find undervalued companies. His most famous book, "The Intelligent Investor," published in 1949, is a bible for investors and remains relevant today. In it, Graham teaches you to buy stocks as if you were buying a piece of a business, not just a piece of stock that goes up or down.<\/p>\n\n\n\n
Graham developed the concept of the "margin of safety," which is the difference between a company's intrinsic value and its stock price. For example, if you estimate a company's value at 100 pesos per share, but it's actually at 70 pesos, that 30-peso margin protects you if something goes wrong. He also created a formula for estimating intrinsic value, based on earnings, growth, and dividends, which used indicators such as P\/E and expected growth. His approach was conservative: he looked for solid companies with low debt and stable earnings, and bought them only if they were cheap.<\/p>\n\n\n\n
![\"Benjamin](\"https:\/\/i0.wp.com\/elinversordebolsillo.com.ar\/wp-content\/uploads\/2024\/09\/graham1.webp?resize=900%2C600&ssl=1\" "\\"\\"")
Benjamin Graham<\/figcaption><\/figure>\n\n\n\n One of his most famous students was Warren Buffett, whom we'll discuss later. Graham also founded one of the first investment firms with his partner David Dodd, and his book "Security Analysis" (1934) is a technical manual for analyzing companies. He died in 1976, but his legacy lives on in value investing, and many investors still use his ideas to find hidden treasures in the stock market.<\/p>\n\n\n\n
Suggested further reading:<\/h3>\n\n\n\n
- Budgeting and Financial Planning<\/strong><\/a>