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Earnings Season: Mooers' Discussion
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[Financial Report 101] How should investors respond when the market fluctuates drastically?

Reporter: “If investors decide to invest in individual stocks, how should they get more information about the company?”

Buffett: “Investors first need to figure out if they know enough to deserve a high return.Investors should read the company's financial statements as much as I did, including annual and quarterly reports.However, after carefully reading these public documents, they are still not sure if they understand the company's business, and they'd better not invest or buy index funds.”

Financial reports provide information that allows price investors to see companies that are undervalued by the market and make investment decisions.Their confidence in investing comes from analyzing financial reports, and then obtaining objective data, data-based logical analysis, and understanding of various business models. Why is studying financial reports the first step in value investing? What is the effect of financial reports? What valuable information can we find in financial reports? This article will answer your questions.
[Financial Report 101] How should investors respond when the market fluctuates drastically?
1. Discovering “Doubtful Points” in Financial Reports

Some companies falsified transactions before listing in order to successfully complete their IPOs and raise as much capital as possible. Listed companies, on the other hand, aim to reduce their holdings at the highest possible price. The higher the stock price, the previous group of investors, executives, or original shareholders can only cash out the transaction as high as possible.If you pay attention to information such as cash flow and liabilities in financial data, you can see questions.Click to read previous articles

II. Discover the core competitiveness of enterprises and provide reference for investment

Emerging markets are the cradle of future leading companies. Market demand is being formed and production capacity is difficult to estimate. Raising the barriers to competition means that it will be able to take more market share in the future.Click to read previous articles
fuboTV $FuboTV (FUBO.US)$ As the number one streaming media focusing on sports, the fourth quarter of 2020 earnings report was released on March 2. Compared to competitors, its main competitive direction focuses on sports. The acquisition of Balto Sport entered the sports betting industry and plans to strengthen its moat by providing free online sports games. However, fuboTV investors will pay more attention to its paying users because of the two major revenue streams: paying users and advertising revenue.
[Financial Report 101] How should investors respond when the market fluctuates drastically?
3. Understand the business strategy of the enterprise

Value investment is an enterprise with good prospects, and the primary basis for determining the development prospects of an enterprise is its business model. Buffett also said that excellent riders need to be equipped with good horses to perform well. Without a good business model, even the best management can only hand over mediocre results.In interpreting a company's financial report, you can analyze it by focusing on the ratio of interest-bearing liabilities, interest expenses to net profit, accounts receivable to revenue, and inventory to total assets.

Thanks for reading, stay tuned @moo_Live Watch the live broadcast of the latest results conference and click to participateMooers looks at earningsLet's get more financial news in the discussion!
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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