Graphical Methods of Investment Analysis
128 Pages Posted: 19 May 2008
Date Written: 1972
Many investors fear mathematics and most know little of it. Perhaps this is because mathematics often is presented too briefly and in a confusing manner. Fortunately, it is not necessary for investors to learn mathematics in order to use it effectively. Well-designed computer programs makes it easy to apply sophisticated mathematical tech-niques. The major problem is not figuring out how to do mathematics. It is identifying the problem, and the technique that can be used to solve it. This requires good investment intuition and a little knowledge about mathematics. Knowing about mathematics is quite different than knowing mathematics. It's a lot easier.
The purpose of this monograph is to provide investors with a little knowledge about some mathematics that is useful in investing and to help them develop a corresponding invest-ment intuition and perspective that can provide insights that otherwise might be missed. The teaching medium is graphs and simple algebra.
Keywords: fundamental, analysis, investment, graph, scatter, plot
JEL Classification: G11
Suggested Citation: Suggested Citation