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

To: Harshu Vyas who wrote (74670)	12/29/2023 8:13:15 AM
From: Sean Collett	Read Replies (3) \| Respond to of 78767

Sigh....one book and now GAAP is trash? If you just got it for Christmas how can you possibly have read the entire thing and digested the meaning? It's been four days. And for what it's worth people have been complaining about GAAP for years. My only challenge here Harshu is that no investor should be taking one element and basing an investment off it. It takes many things to corroborate the value thesis in the investment you're making; earnings/cash flows/story/insider activity. This is one of the major lessons taught by Aswath Damodaran - the numbers are only half the valuation. I also don't think anyone has an issue with respectful debate. Surely not I :) -Sean

To: Harshu Vyas who wrote (74670)	12/29/2023 8:26:48 AM
From: bruwin	1 Recommendation Recommended By Lance Bredvold Respond to of 78767

I see ..... Well, if a company is going to think of doing any "manipulating" of the numbers, isn't that what Independent AUDITORS are supposed to be there for to report and expose as in ----> ..... Needless to say, nothing is perfect, but one does one's best .... With regard to the FCF value, that can be obtained as per ----> ....... where "half" the data comes from the Income Statement, which has that "Net Income" number at its end after all the various "additions" and "subtractions" have been carried out, and the other "half" comes from the Balance Sheet that the "Net Income" number can influence via "Retained Income". But no need to Respond or Debate .....

To: Harshu Vyas who wrote (74670)	12/29/2023 8:50:27 AM
From: Elroy	1 Recommendation Recommended By Spekulatius Respond to of 78767

The idea that you've read a book critical of current accounting processes, and now suddenly you think you have a new and better way to analyze equities is, sorry to say, indicative of your youth. You are a young investor trying to figure out how everyone else has got it wrong, and you've got it uniquely right, and therefore you will win in the investing market. I'd suggest instead you try to figure out how "everyone else" does it today, and then you try to do the same thing BEFORE the others do. Think about it. Even if you are correct that GAAP accounting is useless, if everyone else uses GAAP, how is your opinion that GAAP is useless going to help you? You buy a stock that according to YOUR investment process is great. No one else ever buys your stock, because their investment process is different than theirs. If others never come to YOUR conclusion, how does your investment's stock price go up? To be great in investing, you need to buy a stock and after you've bought it, everyone else has to come to the similar opinion that your stock is great, and their buying pushes the price higher. If you aren't using the same process as lots of other people, how can you be sure that they will ever come around to your view, and buy your stock? GRVY is a great example of this. I'm POSITIVE it's a great inexpensive stock. I realize others do not and may not ever hold my view. So even though my investing philosophy says GRVY is awesome as a stock, since NOBODY seems to agree (no idea why, but they don't) I cannot expect GRVY to go higher. Buyers push prices higher. Focus on getting into stocks that others will want to buy IN THE FUTURE. Don't focus on doing something completely different from what others are doing, because they may do something different than you, forever!