Thanks to Rich Dad Poor Dad (then bankrupt Dad too!) many people know what are assets and what are liabilities…I am making ONE more distinction…. Assets: are those assets which increase your REAL NETWORTH (NW) Assets: that increase your nominal NETWORTH Assets: that are essential for your living and usage Assets (liabilities!): that are not […]
Continuing the Fundamental Analysis series…here is another post. What really is a Balance sheet? It is a summary of the assets that a company owns and the money that is owes to outsiders. Remember as far as the company is concerned, you the shareholder, is an outsider too. Remember – it has its own existence? […]
A promise is a promise….! So here is the first installment in how to read financial statements…. Let us start at the very beginning….when a company files its Annual Accounts it files the balance sheet, Profit and Loss account, auditors report, directors report…ARE THESE TRUSTWORTHY? Well they are as trustworthy as your OWN CV. […]