The Most Suitable Analysis for Long-Term Investment

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The most suitable analysis for long-term investments is fundamental analysis.

Fundamental analysis is a method of evaluating the intrinsic value of a security by examining its financial and economic factors. It involves analyzing a company's financial statements, industry trends, economic indicators, management quality, and competitive position.

Fundamental analysis focuses on the underlying business and economic factors that influence the long-term value of a company or security. It looks at both qualitative and quantitative data, including financial ratios such as price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and return on equity (ROE). The goal of fundamental analysis is to identify undervalued or overvalued securities based on their intrinsic value.

Technical analysis, on the other hand, is a method of evaluating securities based on past market data, such as price and volume. It uses charts and other technical indicators to identify patterns and trends in the market, with the assumption that historical price and volume data can predict future price movements. Technical analysis is more suited to short-term trading strategies and is less useful for long-term investments.

Vertical and horizontal analysis are both methods of financial statement analysis. Vertical analysis involves analyzing a company's financial statements by expressing each line item as a percentage of a base amount, such as total revenue. Horizontal analysis involves analyzing a company's financial statements over time to identify trends and changes. While both methods can provide valuable insights, they are less suited to long-term investment analysis than fundamental analysis.

In conclusion, fundamental analysis is the most suitable analysis for long-term investments, as it focuses on the underlying business and economic factors that influence the long-term value of a company or security.