In a nutshell, fundamental analysis is studying the company from all angles- The company's financial performance in the long term, future business plans, the debt amount, business sector & business structure & evaluating the share's current market price.

A fundamentally strong share can be a wealth generator over a long period. We have many examples of such a wealth generator. For example, the Compounding Annual Growth Rate (CAGR) of Bajaj Finserv Ltd. for the past ten years is 35.4%. In simple words, the share price of Bajaj Finserv has increased at the rate of 35.4% every year for 10 years. The CAGR of Britania Industries Ltd. for the past ten years is 34.6%.

From the above two examples, one can get a rough idea about how fast your money can grow if you stay invested in fundamentally strong shares for the long term.

Therefore fundamental analysis can be a tool to identify companies to invest in for the long term. FA will give you the confidence to stay invested in good shares in the volatility of the market.

Technical analysis gives you bets for short term, the short term approach can generate profits for you, but the long-term approach can be a wealth generator. So, the idle way of trading in the stock market will be getting the best of both technical analysis & fundamental analysis.