Regardless,
I'd add "Creative Cash Flow Reporting" to this. The best way to avoid fraudulent stuff is to pick case studies yourself, the next thing, is understand business, either way, margins and so on, have to be realistically acceptable and logical. Also, ask questions. Then answer them. No one ever got dumber by asking questions.
Enron growth rates were exceedingly unrealistic added together with their CFO , as I mentioned before, grab financial shenanigans and ask questions. Therefore, Bruce introduced 'Destroy the company' concept which you should implement together with the principle of destroying your investment idea.
Cheers,
Good Investing, |
