How to become your own stock analyst

Who hasn't heard of Warren Buffett—one of the world's richest people, consistently ranking high on Forbes' list of billionaires? He is probably best known for being one of the world's most successful investors. 

Do you want to be the next Warren Buffett, or Wall Street analyst? 

Best to start where you are

Looking over analyst reports is the best way to start your own analysis. That way, you save a lot of time by cutting short preliminary work.

Furthermore, you can take a closer look at the earnings forecasts of different analysts, which ultimately determine their buy or sell recommendations.

What to Analyze

To arrive at your own reliable conclusion about a stock, you need to understand the various steps involved in stock analysis. 

Some analysts follow a top-down strategy, starting with an industry and then locating a winning company, while others follow a bottom-up approach, starting with a particular company and then learning about the outlook of the industry. 

You can make your own order, but the entire process must flow smoothly. Any process of analyzing a stock would involve the following steps.