In This Chapter
Understanding what company profits are all about
Getting familiar with the price/earnings ratio
Understanding that dividend declaration you get from the company
Deciding whether you can trust forecasts
Working through company takeovers
Deciphering share price charts
Being a successful share investor involves looking at numbers and understanding them. But don’t worry. You don’t need a PhD in mathematics or rocket-science physics. Much of the figure work involves nothing more complicated than looking to see whether something is going up or down. And most of the rest involves the simple task of comparing figures from one company with those from another.
The most difficult maths task is working out percentage sums, which you can do on a calculator costing a fiver or so – and you’ve probably got one on your phone for free. ...