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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: William Cloutier who wrote (61608)	1/3/2019 12:42:16 AM
From: bruwin	Respond to of 78764

"Anyway, I don't use DCF analysis." I don't think that you will lose out by not indulging in it. "Nonetheless, I find the Cash Flow Statement still useful." Yes, it does give one a good breakdown of where the Cash is and was, etc.... in terms of "Operating Activities", "Investing Activities" and "Financing Activities". But, at the end of the day, the Bottom Line of the Cash Flow Statement ends up as one line on the Balance Sheet as "Cash & Equivalents". And the Balance Sheet is heavily influenced by "Retained Earnings" which comes from the Bottom Line of the Income Statement, .... So I'm an Ardent Fan of the Income Statement ! And I'm also an Ardent Fan of the use of Financial Ratios expressed as Targeted Percentages in the way that Buffett tends to use them. The individual that showed me how to read Financial Statements had a few of his own and I've put them all in the Header of my Board. IMO, if a company is meeting or exceeding those ratios, preferably simultaneously, then it's most likely doing well as a business. And if it's doing well as a business then it's most likely a good investment. And when it stops meeting or exceeding those ratios then one should probably sell and look elsewhere. The way I see it one should only "get married to" one's wife, NOT one's stocks !! {;-)