Miguel Maeztu @AzeriaInvest: "𝐓𝐡𝐞 𝐢𝐧𝐜𝐨𝐦𝐞 𝐬𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭 𝐢𝐬 𝐥𝐢𝐤𝐞..."

Luxembourg

𝐓𝐡𝐞 𝐢𝐧𝐜𝐨𝐦𝐞 𝐬𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭 𝐢𝐬 𝐥𝐢𝐤𝐞 𝐚 𝐛𝐢𝐤𝐢𝐧𝐢 Great quote from a Random Walk Down Wall Street (which itself quotes as well). 𝑾𝒉𝒂𝒕 𝒊𝒕 𝒓𝒆𝒗𝒆𝒂𝒍𝒔 𝒊𝒔 𝒊𝒏𝒕𝒆𝒓𝒆𝒔𝒕𝒊𝒏𝒈, 𝒃𝒖𝒕 𝒘𝒉𝒂𝒕 𝒊𝒕 𝒄𝒐𝒏𝒄𝒆𝒂𝒍𝒔 𝒊𝒔 𝒗𝒊𝒕𝒂𝒍. There is a reason why fundamental investors spend time looking at the accounts. It is very easy to game the accounts and deceive shareholders and investors. The accounts of a company show a lot of (useful) information, but they hide even more important elements. Often, management remuneration is linked to certain targets such as an Adjusted EBITDA or some measure of revenue - the imagination can go wild here. WeWork had some remarkable KPIs, worth writing about it one day. As such, CEOs and Execs will seek to maximise their payout, resulting in Board-approved KPIs driving their actions, but often leaving below the 'Adjusted' KPI a lot of vital information that often is to the detriment of shareholders. It is my opinion that time spent on the accounts is worth it - not necessarily fun, but worth it. A lot of inconsistencies can arise and make a company look worse than what it portrays itself to the outside world. Sometimes, its even the opposite. Nice surprises can await in the accounts, since real earnings differs from regulatory accounting (GAAP/IFRS accounting). 𝘋𝘪𝘴𝘤𝘭𝘢𝘪𝘮𝘦𝘳: 𝘵𝘩𝘪𝘴 𝘪𝘴 𝘵𝘩𝘦 𝘴𝘰𝘭𝘦 𝘰𝘱𝘪𝘯𝘪𝘰𝘯 𝘰𝘧 𝘵𝘩𝘦 𝘢𝘶𝘵𝘩𝘰𝘳, 𝑢𝑛𝑟𝑒𝑙𝑎𝑡𝑒𝑑 𝑡𝑜 𝑚𝑦 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑟 𝘢𝘯𝘥 𝘪𝘴 𝘯𝘰𝘵 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘐 𝘮𝘪𝘨𝘩𝘵 𝘣𝘦 𝘪𝘯𝘷𝘦𝘴𝘵𝘦𝘥 𝘪𝘯 𝘵𝘩𝘦 𝘴𝘵𝘰𝘤𝘬𝘴 𝘮𝘦𝘯𝘵𝘪𝘰𝘯𝘦𝘥. 𝘋𝘰 𝘺𝘰𝘶𝘳 𝘰𝘸𝘯 𝘳𝘦𝘴𝘦𝘢𝘳𝘤𝘩 𝘢𝘯𝘥 𝘪𝘧 𝘶𝘯𝘴𝘶𝘳𝘦, 𝘴𝘦𝘦𝘬 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘊𝘰𝘱𝘺 𝘛𝘳𝘢𝘥𝘪𝘯𝘨 𝘪𝘴 𝘯𝘰𝘵 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘢𝘥𝘷𝘪𝘤𝘦 | 𝘊𝘢𝘱𝘪𝘵𝘢𝘭 𝘢𝘵 𝘳𝘪𝘴𝘬 | 𝘗𝘢𝘴𝘵 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘨𝘶𝘢𝘳𝘢𝘯𝘵𝘦𝘦 𝘧𝘶𝘵𝘶𝘳𝘦 𝘳𝘦𝘴𝘶𝘭𝘵𝘴 $SPX500 $OIL $BABA (Alibaba-ADR) $BRK.B (Berkshire Hathaway Inc) $UK100

Not investment advice. The author may have financial interests in the mentioned instruments.