By continuing to use this site you consent to the use of cookies on your device. Find out more about our cookie policy and the types of cookies we use by clicking here

Equity Investing Cheat Sheet

Easily find your way around's equity investing tools and research Team, 23 September, 2011 | 2:16PM

Do the words “financial statements” and “discounted cash flow” send shivers down your spine? Would you rather think of “earnings per share” and “dividends”? 

While the language of equity investing might seem daunting at first, you don't need to be an investment professional or banker to understand the fundamentals of financial statements or the underpinning logic for adding equities to a portfolio. Throughout the years, we’ve tried to demystify these and other aspects of equity investing in a wide variety of educational material, equity research and commentary as well as fund manager interviews. leverages the input of 161 in-house equity and credit analysts as well as Morningstar’s equity database to provide our readers with up-to-date tools, which can be of use to both equity investors and those simply trying to stay on top of the corporate news flow.

Below you can find a short guide to our equity analysis universe as well as a selection of our most useful articles.

Morningstar’s Equity Data and Research
On, you can track share price movements and the latest news on global equities and read regularly updated views by our equity and credit analysts. Here’s how:

Search for a company’s Stock Report to see share price and fundamentals

Check the company’s Star Rating. Here’s what the Morningstar Equity Star Rating means.

Visit a company’s News Page to read latest regulatory news and company updates from Dow Jones

Sign-up for Morningstar Premium and access our independent research on thousands of stocks, including the analyst’s latest commentary, our fundamental investment case and fair value estimate.

Use our Equity Quickrank to compare fundamentals across equities and make picks for your Portfolio

Equity Investing Classroom
The Basics of Equity Investing: Understanding financial statements, value and economic moats are key to successful equity investing.

Financial Statements: Understanding the financial health of a company.

Discounted Cash Flow: How do you go about estimating what the absolute value of any company should be? Enter DCF.

Measuring Economic Moats: Deciding whether a company has an economic moat means quantifying qualitative factors.

 Stock-picking Strategies
Our stock-picking strategy: Our "fat-pitch" strategy has five key elements that will stand you in good stead for selecting suitable investments.

Picking Stocks for Insulation Against Inflation: Look for these key characteristics, as well as some top picks, when shopping for inflation-beating stocks.

Diversify with Foreign Stocks: What role can international equities play in your portfolio?

Managers’ Insights: For regular inflow of fund managers views on their latest equity portfolio allocations, frequent our Video Centre.

The Case for Dividend Investing
Making Use of Dividend-Paying Shares: Why might you want to seek out dividend-paying shares?

How to Pick a Reliable Dividend Payer: Investment expert Rodney Hobson gives his top tips for income-focused investors, including why equities are a much better bet than bonds.

Rodney Hobson’s The Week: Every Friday, Morningstar columnist, individual investor and long-standing fan of dividends Rodney Hobson shares his view on company and economic news of the week.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.