Better Investment Decisions: Guide to Fundamental Investing in the Stock Market (PDF)

Are You Ready to Take Your Stock Investing to the Next Level?

This insider’s guide from experienced analyst Henry Chien is the most comprehensive book for individual investors on how to use fundamental analysis to pick stocks.

Here’s What People Are Saying

"I found Henry’s book really helpful during my interview process! I was interviewing for a fundamental investment research role and after a couple arounds of behavioral interviews, they sent me a case study and asked me to present an investment recommendation on an assigned company. I references to the examples in this book to build out a cash flow model and financial performance forecast. With the ACE structure I was able to focus on the key factors and complete my investment case study within a relatively tight timeframe as a liberal arts student without a finance or economics related background." Aurora Cai (Investment Analyst)

"Nice work. I have liked your book and used it to advance my knowledge about fundamental investing." Archna Jagtiani (Options Trader)

"The book is full of gold. There are many practical informations that I didn’t read in any other book. I think it’s a great book for intermediate-level retail investors and young wannabe analysts." Emrah Tasan (Global Planning Manager)

The book is a stock analysis treasure trove, full of unique comprehensive information and many timeless investment statements. Darren Cova (Housing Development Manager)

What You Will Learn

• How to Find Insights from the FinancialsLearn the essential financial metrics and what they tell you about the company’s prospects so you can read the financial reports.
• How to Find Long-Term WinnersIdentify patterns of the most dominant companies so you can train yourself to identify the best companies to invest in.
• How to Find Stock Ideas in CatalystsUnderstand how earnings expectations impact stock prices so you can identify when there is an opportunity to buy a stock.
• How to Estimate the Growth of a CompanyUse simple frameworks to help you evaluate the earnings potential of the business so you can estimate the stock’s returns.
• How to Develop Investment IdeasDiscover how analysts turn observations into profitable investment ideas so you can develop your own stock ideas.
• How to Evaluate Stocks with a Cycle PerspectiveAnalyze sectors so you can profitably invest in stocks that are impacted by economic changes.

…and much more

How Do Readers Benefit?

• Individual investors use practical frameworks and methods of professional investors to pick stocks with better risk-adjusted returns.
• Financial analysts use walkthroughs and examples to accelerate their career development in the investment world.
• Market professionals use the new knowledge of fundamental analysis to improve their decision-making abilities.

Let Me Tell You About the Book

Better Investment Decisions is the most comprehensive guide for individual investors on how to use a fundamental process to pick stocks. I don’t believe you’ll find a more practical book written from the perspective of an experienced stock analyst.

What do you do when you invest in a stock? 

If you’re like most people, you’re overwhelmed with information. You seek other people’s opinions to develop conviction or analyze the stock prices, looking for clues. You get stuck in analysis paralysis, so you finally go with your gut and buy the stock that “looks good.” Once you own the shares, the price suddenly goes up or down, and you react emotionally, making a quick decision you regret later.

What if there were a better way to pick stocks? A process that could help you think more clearly, feel more confident, and second-guess yourself less. That’s what fundamental investment is all about—making long-term investment decisions based on thoughtful analysis. Good investing doesn’t have to be completely about luck. Fundamental analysis is a teachable skill that anybody can sharpen. Once you understand the principles, you can make thoughtful stock investment decisions that can benefit your portfolio’s returns over time.

Henry Chien, an experienced Wall Street equity research analyst, lays out a series of case studies to show you how fundamental investors make money in stocks. You’ll learn the following:

• To identify high-quality investment ideas
• To analyze financial information faster 
• To more accurately identify situations that make money in stocks
• When to invest in certain types of stocks
• To identify stocks that help meet your financial goals

You’ll learn fundamental stock investing through the eyes of professional analysts working with real-life stock examples. Better Investment Decisions will reshape how you think about stocks and give you the tools and strategies you need to pick stocks with better risk-adjusted returns—whether you’re sharpening your investment process, picking new stocks for your portfolio, or wanting to understand the stock market better.

About Henry Chien

Henry Chien was an analyst on the award-winning Business Services equity research team at BMO. His clients included the world’s largest hedge funds and asset managers, including JP Morgan, Point72, Citadel, and Bank of Montreal. As a research analyst, he recommended one of the top-ten highest-returning investments (MSCI, +711%) in the S&P 500 between 2016 and 2021.  His research has been highlighted in globally respected periodicals, including The Financial Times, Barron’s, and Institutional Investor. He is a CFA charterholder and a graduate of Brown University.