First and foremost, before you invest, you need to decide what a good COMPANY is. You do this by looking at the FUNDAMENTALS of a company. It's like "looking under the hood" before buying a car. It is both an art and a science and you get better in time. Warren Buffet famously said that he likes curling up with Annual Reports when he goes to bed.
So, let's start by looking at a company's Balance Sheet - you will see where to find these next. First, click here for a simple article on spotting a strong or weak balance sheet.
So, let's start by looking at a company's Balance Sheet - you will see where to find these next. First, click here for a simple article on spotting a strong or weak balance sheet.
One Minute! What's an Asset? What's a Liability? What's Equity?
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You can find the balance sheet as part of the Annual Report or the 10K Report (a report that the SEC requires all publicly-traded companies to submit)
Step 1. Click here to learn how to read an annual report - effectively.
Step 2. Click here to understand why a 10K Report is important in making your investment decisions.
Step 1. Click here to learn how to read an annual report - effectively.
Step 2. Click here to understand why a 10K Report is important in making your investment decisions.
For more detailed readings (all good), see these articles.
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