Daily Archives: April 18, 2019


Understand Accounting To Be A Better Investor – Earnings Vs Free Cash Flow

One of the mantras I keep iterating on this site is that for you to be a successful investor, you need to understand accounting. I wrote about this in a post titled ‘Investors Need To Understand Accounting’. Reading and understanding an annual report will give you the clearest picture of a business and where it is headed. The accounts can show you whether a companies earnings are real or if they are just being magicked up. Conversely, knowing accounting and its intricate rules can help you understand a balance sheet and find hidden value in companies. As I have mentioned before, for those that don’t understand accounting or don’t have […]