Why Stocks Go Up and Down

Why Stocks Go Up and Down is an in-depth introduction to stocks and bonds. Starting at the beginning, it explains the basics of financial statement analysis, cash flow generation, stock price valuation, and more. Stock valuation methods include price/earnings ratio, price/cash flow ratio, and Enterprise Value / EBITDA.


The book is about fundamentals; it is not an investment system or "how to make a million dollars in the market." Understanding the fundamentals will help you get more from books about investment strategies, philosophies, and systems.