Qualities of a Great Analyst
Financial analysis is not about predicting the future with accuracy; This is an illusion. It’s about weighing the possibilities.
Excel Expert calculates the discounted cash flow (DCF) and thinks that the company is worth Rs 1,452. The absolute analyst calculates the DCF, understands the sensitivity of assumptions, believes that the development guidance of management can be optimistic, realizes that the market is currently in a state of euphoria, and concludes that the math works , the risk is too high.
You must be a chemist. You must understand the volatile elements of human psychology, the static elements of business fundamentals, and the safety protocols of regulation.
Get back to work. And remember: tools don’t search; mindfulness does.
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