A fundamental trading strategy is an investment approach that is usually based on fundamental analysis. Identifying and evaluating investment opportunities is an integral part of this strategy. The following criteria can be applied:
- Qualitative criteria
- Good Corporate Governance
- Quality of management or risk management
- Competitive situation
- Quantitative criteria
- Price-to-earnings ratio (P/E)
- Price-to-book ratio (P/B)
- Price-to-cash flow ratio (P/CF)
- Price-to-earnings growth ratio (PEG)
- EBITDA margin
- Return on equity
- Return on total assets
- Earnings growth
- Dividend yield
- Equity ratio
The following section introduces a selection of investment strategies and highlight potential approaches for enhancing portfolio performance. It also considers value investing and discuss the Warren Buffett method.
Author
Günther Kornfellner, CFA, CAIA
Derivate Trader, Bybit EU