Fundamental analysis investors believe that thoroughly understanding a company and estimating its value can lead to "buy low, sell high" opportunities.

"Price is what you pay, value is what you get," Warren Buffett, well-known for his value-style investing success using fundamental analysis, has said. The concept is to pay a low price for something you believe has a high value in the hopes that the price will rise later.
Long-term investors prefer fundamental analysis because it emphasizes a company's strength and long-term potential. Value investors, such as Warren Buffett, make buy-and-sell decisions based on intrinsic value estimates generated through fundamental analysis.

Fundamental analysis is essential for investors seeking to understand the intrinsic value of a stock or asset. By analyzing a company's financial statements, economic indicators, and industry trends, investors can make informed decisions about buying or selling. This method provides a deeper insight into the health and potential growth of a business, beyond short-term market fluctuations. It helps identify undervalued or overvalued assets, enabling investors to capitalize on opportunities and mitigate risks. Moreover, fundamental analysis fosters a long-term investment mindset, focusing on the underlying fundamentals rather than speculative market behavior. Ultimately, it empowers investors to make rational, data-driven choices aligned with their financial goals, enhancing the likelihood of achieving sustainable returns in the dynamic world of investing.