What is the philosophy of fundamental security analysts?

Fundamental security analysis is based on long-term economic value. Fundamental analysts believe each security has a true or “intrinsic” value around which its price oscillates. In this philosophy, the job of security analysis is to analyze all relevant business and economic data to estimate intrinsic value. A security priced below its intrinsic value is a good buy while one selling for more than its intrinsic value is not.

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