Question

If you were stranded on a deserted island with only one method of Investment Analysis, which one would it be and why?

Answer 1

If you are stranded on an island you need to look at a bigger picture. You cannot trace the market at a miniscule level due to technological disadvantages you might be facing. In this scenario, TOP Down Investment analysis is something you should look for. This analysis examines the economic, market and industry trends before making a more specific investment decision. Sometimes the technology or the methodology followed by a partcular industry outperforms it's financial capabilities and any current market trend. Therefore If you study and feel that the technology that has been adopted by a particular industry could prove to be a turning point then even though the financials might suggest otherwise, you will reap benefits from this investment in future.