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17-12-2012, 12:34 AM
Believe it or not?
Extract from John Tracy:-
Q:
Is it worth your time as an individual investor to read carefully through the financial statements and also to compute ratios and make other interpretations?
Ans:-
I doubt it. The conventional wisdom is that by diligent reading of financial statements you will discover under or overvalued securities. But the evidence does not support this premise. Market prices reflect all publicly available information about a business, including the information in its latest quarterly and financial reports.
If you enjoy reading through financial statements, as i do, fine. It's a valuable learning experience. But don't expect to find out something the market doesn't already know. It very unlikely you will find a nugget of information that has been overlooked by everyone else. Forget it ; it's not worth your time as an investor. The same time would be better spent keeping up with current developments reported in the financial press.
Ha! Ha!
How much is truth? And how much is just his opinion?
Anyone like to comment?
Extract from John Tracy:-
Q:
Is it worth your time as an individual investor to read carefully through the financial statements and also to compute ratios and make other interpretations?
Ans:-
I doubt it. The conventional wisdom is that by diligent reading of financial statements you will discover under or overvalued securities. But the evidence does not support this premise. Market prices reflect all publicly available information about a business, including the information in its latest quarterly and financial reports.
If you enjoy reading through financial statements, as i do, fine. It's a valuable learning experience. But don't expect to find out something the market doesn't already know. It very unlikely you will find a nugget of information that has been overlooked by everyone else. Forget it ; it's not worth your time as an investor. The same time would be better spent keeping up with current developments reported in the financial press.
Ha! Ha!
How much is truth? And how much is just his opinion?
Anyone like to comment?
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.
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.