|
Bo Diddley once said, “You can get ripped off much easier by a dude with a pen that a dude with a gun.” Bo knows this fact and we all should too especially with the Bernie Madoff scandal fresh in our minds. Chapter 12 of the Intelligent Investor teaches us how to look at the numbers games that companies play in order to find the truth. Zweig in the commentary on Ch. 12 gives example after example of companies like Qwest Communications, Global Crossing, Micron Technology and SBC who manipulated their financial statements to make themselves look better than advertised. Check out these tips.
Read backwards: When researching a company’s financial statement, start reading the last pages and work forward. This may seem counter intuitive, but that is exactly why company’s put all the things they don’t want you to know in the back.
Read the notes: Graham and Zweig say to NEVER buy a stock without reading the footnotes to the financial statements in the Annual Report. These notes summarize how a company recognizes Revenue, records inventories, expenses cost and accounts for the other aspects of its business. Be sure and check for words that signal changes in accounting practice. This doesn’t mean that the company is up to no good, but chances are….
Get your read on: Zweig also recommends for the hardcore investors to read books about financial reporting. He specifically mentions The Financial Numbers Game and Financial Shenanigans.
Go get paid!
|
|
|
This Molifeney book review comes courtesy of Michael Lewis. Some may be familiar with Lewis’ more recent work Moneyball:The Art of Winning an Unfair Game written about the Oakland A’s baseball team. Liar’s Poker is Lewis’ first book and may be his best. There are actually two different story lines running somewhat parallel in the book. The first is somewhat of an autobiographical account of Lewis’ days as a bond trader at Salomon in the 80’s. Lewis got a job at the once reputable firm having no knowledge of finance and business but just a desire to make money. He goes into great detail explaining the culture and craziness that was Wall Street in the 80’s. Liar’s Poker is full of stories about lavish expenditures, no holds barred gambling and downright obnoxious behavior by America’s “elite”. The second story line gives a history of Salomon Brothers and Wall Street in general. The book in its original form has plenty of notes at the bottom explaining the jargon used for those uneducated in the finance vernacular.
Liar’s Poker is hilarious and a very, very interesting read. You get an insiders view of the Wall Street culture and you also end up learning a good deal about bonds, mortgage trading and finances in general. It is also interesting to see names like Warren Buffett and Mike Milken pop up and how their roles shaped Salomon and the economy in general. As always, you can check out Liars Poker at your local library or order it online at www.amazon.com
Note: Michael Lewis has an excellent piece titled “The End” regarding Wall Street’s demise. Check it out.
|
|
|
Oh yeah, it is time to get down to the nitty gritty of stock picking. We covered the appetizers in the first ten chapters, here comes the main course. The beautiful thing is that now is an absolutely wonderful time to investigate stocks. Yeah, yeah the market is bleeding we all know that, but when there is blood in the streets it is time to buy. Benjamin Graham and Zweig give the rundown on exactly what to look for when analyzing a potential company to buy. Stock picking isn’t rocket science, even someone like Sarah Palin could do it, it just takes a little time and effort.
|
|
|
I know I am extra late with this review, so I apologize up front. Thanks to Netflix I was finally able to watch Michael Moore’s last movie Sicko. For the few Michael Moore virgins, he is the documentary maker behind Bowling for Columbine and Fahrenheit 911. He is also about as far left with his views as one could be without having the last name of Marx. With that being said I enjoy his work, but take it with a grain of Morton’s. His latest work addresses the controversial issue of universal health care.
Sicko Movie Trailer
|
|
|
I have a special place for financial advisors in my heart, I know firsthand how difficult the battles that they fight are. At Molifeney we are pro-advisor, as long as it is a good advisor. The truth is that most people need an expert to consult with regarding their finances, if your health was in bad shape most likely you would consult a physician. The same is true with your financial health, but remember to always get a second opinion. Molifeney is that second opinion. Chapter ten addresses what to look for in an advisor and how you know if an advisor is right for you.
|
|
|
|
<< Start < Prev 1 2 Next > End >>
|
| Results 1 - 9 of 11 |
