Describing the value of a company is important to making decisions, and lots of things can be learned from looking at a balance sheet. I learned to do all this in business school, but I haven't practiced it since the early 1980s.
A little homework is in order, so I've been doing a little research, and I'm going to leave this link right here so I can find it later. LINKY TO BASIC BUSINESS FINANCIALS. All investors should be able to get a balance sheet and an income statement. Most of what we need to evaluate a company's health is right there. Business is about numbers and those are the numbers.
For example, if you're trying to figure out the intrinsic value in one share of a company's stock, you'd do well to find its net worth (assets minus liabilities) . Divide the result by the number of shares outstanding and you have the book value of one share.
It's good to remember these things, and the ratios sometimes escape me.
Seems like most people blindly follow the 'advice' of advisors (Paid by whom???) to tell them what to invest in, without doing ANY due diligence!
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