Fundamental analysis is simply the quantitative approach that combines the disciplines of accounting and finance. In essence, it serves as the thermometer for determining the financial health of a company and helps investors forecast the future value of stocks and bonds. Problems usually occur when investors sidestep the financial analysis and planning processes and base their decisions on illusionary factors that tend to be motivated by the human characteristics of greed and fear.
Financial planning is more than the stock, bond and mutual fund selection process.
It incorporates many valuable disciplines to help map out a blueprint for financial success. Learning to do financial analysis isn't difficult, but it does require time and discipline to develop the talent to apply it on the fly. The book shows how to read publications such as Investor's Business Daily or The Wall Street Journal and explains the quantitative process of valuing stocks in layman's terminology. Perhaps the most important aspect of planning is knowing and learning one's financial personality. Financial planning should prepare in-vestors for both anticipated and unexpected business cycles.