THE INTERPRETATION OF FINANCIAL STATEMENTS (BY BENJAMIN GRAHAM)
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 Published On Mar 24, 2019

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Fundamental analysis & value investing 101. This video presents the 5 greatest takeaways from Benjamin Graham’s classic, The Interpretation of Financial Statements.

A playlist that will help you in mastering Benjamin Graham’s art of Value Investing: http://bit.ly/2Txvxgd

Top 5 takeaways from Benjamin Graham’s The Interpretation of Financial Statements:
00:00 Intro
02:04 1. Understanding the Income Statement and the Balance Sheet
05:13 2. Industry Specifics
07:53 3. Watered Stocks
09:35 4. The Liquidation Value of a Firm
11:29 5. Expected Returns of the Quantitative Investor

TL;DW:

- Know thy income statement and balance sheet
- Ratios are useful when considering the fundamentals of a company, but beware. If the numbers are healthy or not depends on the industry.
- It’s quite common that stocks are “watered” to look like they perform better than they actually do
- If a stock is priced lower than its current book value, the intelligent investor should take a closer look. This, could be a great value investing opportunity
- To achieve maximum portfolio returns, the value investor should do both a quantitative and qualitative analysis of his stock market investments

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