Fundamental analysis demands, may insists, on information about a company. It requires subjecting a company’s performance and its financial statements to the most piercing scrutiny as well as the analysis of the economy and the industry in which the company operates. And the fundamentalist makes his buy or sell decision on the basis of his interpretation of the information that he receives, his analysis, and on the strength of his experience and investment maturity.

These are the major sources of information. One must train oneself to listen and absorb information that is received. One should analyze and interpret the information to determine the profitable course of action to be taken. This is the essential governing principle of fundamental analysis – action only after receiving and analyzing information.

All information is important and can be grouped under the following classifications:

a) Information about the economy.

b) Information about government policy; taxation, levies, duties and others.

c) Information about the industry in which the company operates.

d) Information about the company – its management, its performance, its sales and its products including its performance in relation to other
similar companies.

e) Information about consumer outlook, fashions and spending.
In India we are fortunate that there is greater awareness of the need for information today than ever before and this need is being addressed by the media, researchers and professional investment consultants are addressing that need.

Internet
The internet is a tremendous source of information. It can tell you about the economy, company results, profiles and a host of other information. Now you can even buy and sell shares instantly on the “net”.

Media
There are several investment and business focused magazines, papers and directories that are available today that discuss the economy,
industries and individual companies. These contain articles of a high standard that analyze industries and companies in depth. They also contain knowledgeable articles on tax, investment strategies, finance and allied subjects.  The serious investor should read at least one
good financial paper every day and two magazines a month. This ought to keep him well informed.

Investment Newsletters
There are several professional investment managers and experts who publish investment information. This is extremely useful as they are often very up to date and contain information not generally available to the investor.

Insiders
Insiders are persons who work for a company or who have intimate dealings with a company and have access to, or are aware of information
that is not generally known. This could be information on the performance of the company or rights or bonus issues or some other relevant news. As the information is not known to all, the investor must act fast if he wishes to make a killing. The Securities Exchange Board of India (SEBI) has published regulations prohibiting insider trading.

Seminars and Lectures by investment experts
Excellent seminars and lecture are being held in the country. These are conducted by eminent individuals and one can pick up a lot of information attending these lectures. These may be on how an industry is doing, their view of an industry and the like. One can even share thoughts with those they meet. This can result in forming opinions. Acting on these opinions could be profitable.

Stockbrokers
Stockbrokers are always in touch with companies and are normally aware of their performance and other factors affecting the price of a share.

These are the major sources of information. One must train oneself to listen and absorb information that is received. One should analyze and interpret the information to determine the profitable course of action to be taken. This is the essential governing principle of fundamental analysis – action only after receiving and analyzing information.

It is also extremely important that one acts swiftly on the information received as the person who receives it first will often be the person
to profit most from it.