Tag: health
-
17. Cash Flow Statement Analysis
This is the last chapter of the analysis of the financial statements. In my opinion, the Cash Flow statement is the most important because it describes the amount of cash and cash equivalents entering the company. What we are going to learn: As we saw in the first article, the income statement uses the accrual…
-
Athenaeum – Library
Fig 1. Giordano Bruno “Believe that nothing is impossible for you, think yourself immortal and capable of understanding all, all arts, all sciences, the nature of every living being. Mount higher than the highest height; descend lower than the lowest depth.”Giordano Bruno DSCompounding letters to investors Psychology Society Philosophy Value Investing Accounting Management Recessions and…
-
16. Balance Sheet Analysis
In the first part of our overview, we analyzed the income statement, now we are going to look at the capital structure of our business, namely: the balance sheet. If earnings are our engine, the balance sheet is the frame of our machine. I like using allegory to make the point, in this case a…
-
15. Income statement analysis
Here we go! The first thing to do is recovering the financial statements of the company that we have chosen. A good idea is to choose a company within our circle of competence (10. Circle of competence). What we are going to learn: The goal is to find the best compounder with a competitive advantage.…
-
Stock Market Crash
I am taking care to warn my followers about the notion of bubbles and the consequential crash. What’s a bubble? Occasionally Mr Market (8. Mr Market) tends to become too exuberant about the future of the market or more often one specific sector. The most recent and known bubble was the dotcom bubble. At the…
-
14. It’s a war
“In business, I look for economic castles protected by unbreachable moats” Warren Buffett Capitalism is like life, it is a war. Our goal is to find the best fortress where to put our capital, ideally a fortress with a wide moat, and a smart and powerful lord.In the course of human history, battlegrounds have changed…
-
13. 10-K
“The SEC enforces the securities laws to protect the more than 66 million American households that have turned to the securities markets to invest in their futures—whether it’s starting a family, sending kids to college, saving for retirement, or attaining other financial goals.” sec.gov As explained on the first page of the SEC website, the…
-
Cryptocurrencies
As usual, I want to start with a quote, in this case, Naval Ravikant, a notorious entrepeneur and angel Investor. For those uninformed about this branch of investing: Angel investors are the first investors in embryonic projects, namely start-ups. Naval is active on Twitter (@Naval) and, if you are interested, I warmly suggest you to…
-
Case Study 2 – Berkshire Hathaway
Do you remember when I spoke about how companies reward us? (7. How the companies reward us). I decided to write some case studies in the course of this blog because I think that reinforces the concepts in our minds. Initially, the goal of those studies is to explore events that give us a hint…
-
12. Starting point
Well, let’s start our journey through the numbers. As I said, quantitative analysis isn’t my preferred part. I prefer good stories, but over time, due to some errors, I understood the importance of numbers. Stories sometimes lie (i.e because the CEOs lie, often they are only good salesmen. We will learn how to value a good…