How to Read an Annual Report in 10 Minutes- Part 2

In part one, we laid down the basics. Now let’s talk about numbers. We are going to take a look at our annual report again. In a good one, we will find a table. Usually, we can find it near the front or back and it will show a five or ten-year financial summary. At…

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Coping With Success

Dr. Ari Kiev, author of “Trading to Win”, says that “winning days are often followed by plateaus and losing streaks.” Dr. Terrance Odean, a behavioural economist, has pointed out that beginner online investors who have multiple successful trades often wind up over-trading. It seems that as novices, we think that because we have had a…

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How to Read an Annual Report in 10 Minutes- Part I

It’s annual report season once again and like you, I am waiting for the deluge of reports to arrive in my mailbox. It’s easy to feel as if we are drowning in a sea of paper and numbers, but there is a way to keep our heads above water and minimise the amount of time…

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The Simplest Investing Tool: Book Value

An easy way we can estimate the valuation of a company is to look at its price-to-book value. The worth of a stock is its current value of the future cash it generates. We can view this cash in terms of the dividends paid out or how much cash the company generates. While this is…

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How To Put a Price On Earnings

Whether paid out as dividends to shareholders or retained by a business, a share’s worth is the current value of the cash it will generate in the future. We hear financial strategists suggesting that a company should be valued by creating a complicated discounted cash flow valuation. However, there are some drawbacks to this approach…

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