Friday, July 29, 2011

Investopedia: Evaluate Your Investments With SWOT Analysis


SWOT analysis can be a useful tool in evaluating and monitoring equity investments. Standing for "strengths, weaknesses, opportunities and threats," SWOT analysis was reportedly developed by Albert Humphrey in the 1960s and has become a staple concept in business management and investment evaluation. (To understand the qualities that make for a great company, investors must dig deep into "soft" metrics. Check out Qualitative Analysis: What Makes A Company Great?)


Most commonly used as a business planning tool, SWOT analysis can be used to evaluate products, divisions, companies and entire markets. It can also be used as an investment tool; giving an investor a handy snapshot of the potential advantages or disadvantages of a company's current positioning.


To read the primer, please click below:
http://www.investopedia.com/articles/financial-theory/SWOT-analysis-primer.asp

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