This is a very brief introduction to the very vast subject of fundamental analysis. Subscribers of i Capital® are encouraged to undertake more research of their own to fully benefit from this important topic. To understand and make productive use of fundamental analysis, familiarity with accountancy and economics are essential. However, one need not be an accounting or economics expert for this purpose.
From a shorter - term perspective, one could argue that fundamental analysis does not apply to the Kuala Lumpur Stock Exchange (KLSE). From a longer - term perspective, however, it is very difficult to invest successfully even on the KLSE without incorporating fundamental analysis into one's methodology. While the general perception is that the KLSE is still an inefficient market where rumours, tips, poor corporate governance, etc. rule, the smart investor would realise that applying sound fundamental analysis in such a stock market can be rewarding. But just like any other investment methods, fundamental analysis has its strength and weakness.