Chapter 9: Margins, ratios and all that jazz

As a stock picker I feel compelled to discuss the fundamental analysis that we used at Wilson Asset Management in a bid to outpace the overall sharemarket for more than a decade. The aim of this part of the book is to convey the message that studying company numbers is not rocket science: it is within the grasp of the average investor. The discussion will not be comprehensive, but hopefully it will point you in the right direction and kick start an intrigue with companies and the results they produce.

Studying company numbers is not rocket science: it is within the grasp of the average investor.

Every sharemarket expert has a favourite ratio they claim unlocks the secrets of outstanding stock picking. ...

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