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Definition: Qualitative analysis is a way to analyze companies by focusing on their business models, as opposed to financials and other quantitative measures.
Advice: When doing qualitative analysis, investors ask themselves questions like the following:
1.) Does this company have a competitive advantage? If so, is it sustainable?
2.) Who are its competitors?
3.) Does the company have the ability to achieve economies of scale?
4.) How experienced is management? Are they acting investors' interests?
Quantitative analysis is usually performed after doing qualitative analysis.
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