A Personal Finance Blog for Malaysian: How to Read a Financial Statement?

Monday, November 8, 2010

How to Read a Financial Statement?

This is the book recommended by the trainer during my 2 1/2 days class in "Learn To Invest - Tutorial 101".

He said most accountant do not really know how to read a Financial Statement for the purpose of investing. The Author of this book has spent years before he master the skill on how to read for Vital Signs Out of the Number.

Book review http://books.google.com.my/books?sitesec=reviews&id=_uQhXsCkAW4C






Have your Unit Trust investments given you a good return?

5 comments:

  1. Interesting, accountant do not know how to read financial statement?

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  2. Hi ChampDog, I am qualified chartered accountant and I would like to put it this way: there are specialist and sub-specialist just like in medical profession.

    What I'm saying is, most accountants are not trained to analyse/read financial statement as an investor. Yes, they prepare it but it doesn't mean they really know how to interpret and analyse it for share investment purposes.

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  3. I see, got it!:) I went through an mini-MBA program in our company, in one of the section on financial, there are so many formula and ways how you could interpret that.

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  4. for a normal investor, do you have any advice in analysing the annual report?
    i mean make it short, as we know, some companies their annual report thick as hell...

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  5. @Jeff, get educated is the best investment anyone can do to better their money making skill. The oldest participant in the class I have attended is about 60+ and still learning.

    Since you ask this question i believe you are looking into a fundamental investing (instead of speculative investing), therefore, you can't avoid being "don't know". Don't worry, you don't need to be expert in analyzing financial statements in order to make money, to learn the basic will do, meanwhile your "kung-fu" will improve from time to time.

    Get a good book / course (finance for non-finance people), meanwhile blog like http://nexttrade.blogspot.com is a good source to refer to BUT all the info will be only as good as at the point of writing. No one is responsible to keep you updated the next day on the latest progress or results, right?

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