Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: dvdw© who wrote (138881)	2/3/2018 11:30:46 AM
From: Elroy Jetson	Respond to of 221949

People who can dig into books revealing the truth do everyone a big service. But when a company like GE consistently increases their earnings each year by exactly the same percentage year after year you know they're lying to you without needing to know the details. The messy real world up and down of actual profits never resembles that outside of a savings account or an employee's earnings. Wall Street analysts and investors love companies like this because they are "no surprises" but behind the scenes the company CFO and CEO are working a lot of schemes to "smooth their earnings flow" which serves no real-world purpose. There's lots of different ways to create accounting "cookie jars". A home builder can build condos and homes during good years and sell the homes but rent out the condos. When housing tanks cut way back on building and sell the rental condos for what ever price they will fetch, providing yet another year after year of "consistent earnings growth". In a super-cyclical industry like home-building t shouldn't pass the smell test but investors like being lied to. Company CEOs like selling to Berkshire Hathaway because their profits and capital need can vary with reality while Warren Buffet's "Smoothers" in their insurance and investment divisions even-out those lumps into predictable earnings.