Chapter 4 · 5 of 100 marks · workbook pages 78-89
Fundamentals of Research
Investing versus speculating, active versus passive, mosaic analysis versus insider information, the four research approaches, and the commodity research frame with gold and crude as cases.
Focus
- Investing vs speculation
- Mosaic analysis
- Technical, fundamental, quantitative, and behavioural approaches
- Commodity research
Must know
- Investment is a disciplined wealth-creation activity based on risk, return, time horizon, and valuation.
- Mosaic analysis uses public information pieces to form a view; insider information is prohibited.
- Fundamental analysis studies economy, industry, company, financials, and valuation; technical analysis studies price and volume behaviour.
Traps
- Speculation is not automatically illegal, but it is different from disciplined investing.
- Public information analysis is valid; non-public price-sensitive information is not.