Practical Uses of Inventory Accounting

Inventory accounting methods help report cost information to management and investors. They don't directly affect the physical management of the inventory operations. Yet, these methods can provide insights to general consumers of the financial world and investors.

Representation crisis

As I wrap up the current earning season, I find that my confidence in reported numbers doesn't increase. Inaccurate representation about current business operations and future prospects keep showing up in corporate earnings reports.

Amortization Accounting

Blindly following conventions is the enemy of reality. When companies or investment professionals add back certain expenses such as stock-based compensation they want you to accept concepts that are dangerously defective.

Investment Process: Evaluating Management through Press Releases

A company's management has two primary responsibilities: running strong operations and allocating capital wisely. However, businesses inevitably experience periods of ups and downs. It is during periods of weak performance that management’s true character is revealed. Since assessing management is a critical part of my investment process, press releases can sometimes serve as a valuable tool in this evaluation.

Security Analysis - Chapter 34

Security Analysis by Benjamin Graham and David Dodd was first published in 1934. It is a fundamental book for serious students of value investing.

Security Analysis - Chapters 35 and 36

Security Analysis by Benjamin Graham and David Dodd was first published in 1934. It is a fundamental book for serious students of value investing.

Importance Of Shareholder Base

Imagine a corporation, A, that owns long-term, stable rental units, but whose shareholders are predominantly day traders. Can the managers of such a corporation have fearless nights?