1. What is securities analysis?
Analysis of information that focuses on valuation, i.e., figuring out whether a particular investment will return more than was invested

2. Investment styles Intuitive investors rely on their instincts
Passive investors assume that the market is efficient
These investors run the risk of paying too much or selling for too little
Fundamental analysis minimizes this risk by thoroughly examining the information and reaching conclusions about the value of the firm

3. “Price is what you pay, but value is what you get”
Price is the cost of the investment
“what you get” are future payoffs
Fundamental analysis involves comparing the future payoffs with the price

4. How do we analyze value? Know the business Know the industry Tools
Primary source of information will be the firm
Secondary sources for industry
Financial statement analysis
Forecast future performance
Come up with a valuation and a recommendation