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 high returns. 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.
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, and market demand is positive...