Is Investing an Art or a Science?

Is investing an art of a science? The short answer to this question would be both.

If your investment approach is using fundamental analysis, you would need to read financial statements, know your ratios for example, ROE, gross margin, net margin, P/E, P/B etc. If your investment approach is using technical analysis, you would need to read charts, know what are MACD, Stochastics, candlesticks, bearish or bullish signals etc.

Successful investors would advise that to do well in investment, besides knowledge, “psychology” of the investor is of utmost importance. Human behaviour and emotions cannot be predicted by scientific methods, and often, the market does not behave rationally.

We know that Warren Buffett, one of the most successful and well-known investor, is well-versed in both the science of numbers and the art of picking the right stock at the right time.