Questions on statement of cash flow

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#21
(30-04-2013, 05:19 PM)godjira1 Wrote: Specuvestor - u bring up the right questions to ask for sure.

My answer was of the basic 101 variety in this case but from my days back in school I knew people who struggled to get this relationship between how the 4 statements fit together. Without having a sound understanding of that it is difficult/impossible to ask the qualitative questions u raised.

Of course! Of course! Basic is first.
The difficult part is if Revenue is increased or even decreased, why? Is it good or bad? So you go and check the receivables, trade payables, inventories, sales figures, etc.. i think the worst case is even you check everything, things will not be so clear cut at first (if company has the intention to cook the book). On the other hand retail investors will usually be the last to know company is cooking the book.

Retail Investors can never beat the professional analysts and fund mangers. But if you really like to "check A.R. very thoroughly", and you think you have an edge by doing it? It's good for you. But for basic training i think it's very good; especially for people like me. i have all the materials but to tell the truth i do only bits and pieces; for i am too lazy or think it really does not give an edge, except maybe over the beginners for just "understanding the investment world better".
Me most of the time, i hear it from somewhere and everyone of you. So i try to buy the company that makes me money in the first place. i can't afford to "speculate" anymore. IMHO.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#22
(30-04-2013, 05:19 PM)godjira1 Wrote: Specuvestor - u bring up the right questions to ask for sure.

My answer was of the basic 101 variety in this case but from my days back in school I knew people who struggled to get this relationship between how the 4 statements fit together. Without having a sound understanding of that it is difficult/impossible to ask the qualitative questions u raised.

Understood. I was trying too hard to raise the ante a bit Smile

It is sometimes frustrating that people value the box more than the pearl itself Smile
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#23
(01-05-2013, 09:24 AM)specuvestor Wrote:
(30-04-2013, 05:19 PM)godjira1 Wrote: Specuvestor - u bring up the right questions to ask for sure.

My answer was of the basic 101 variety in this case but from my days back in school I knew people who struggled to get this relationship between how the 4 statements fit together. Without having a sound understanding of that it is difficult/impossible to ask the qualitative questions u raised.

Understood. I was trying too hard to raise the ante a bit Smile

It is sometimes frustrating that people value the box more than the pearl itself Smile
AS usual, you can write as if you are drawing. i hope you can write your drawings more. For us to admire your "writing drawings".
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply


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