My Small Beef With The Motley Fool
I usually really like reading the articles from The Motley Fool, but it starts to worry me a little bit when I see articles like Understanding The Balance Sheet. Granted, it’s a lot to cover in one article, to say the least, but it makes me wonder why an investor website like that is covering the topic at all. Selena Maranjian did a great job with the space she had to work with, although I disagree with her about looking for companies with “little or no debt.” If you’re an investor buying individual stocks, and you’re picking your stocks based on financial statement analysis, then you probably already know everything and more than what was covered in the article. But if you’re analyzing companies at the level suggested in this article, then I can assure you that you have no comparative advantage to the rest of the market, and may as well throw darts to pick your stocks, or pick them based on fads, trends, or seasons. Basically what I mean is: if you’re in-depth enough to do your own analysis, this article falls far short, but if you’re just getting your feet wet with analysis and found this article informative then you should not be buying individual stocks.
(Somewhat) Similar Posts:
Here's an interesting investment perspective: For example, just a quarter a day, saved over 20 years, becomes more than $4,500 if you earn a market-matching 8%...The economics are simple: another use of corn, sugar, and other farmed food inputs to produce ethanol increases the demand, which pushes up the price....In response to this article on realclearpolitics.com, I sent the author, Mark Davis the following email: I appreciate your respectful article, "Romney Can't Ignore Questions About...Microsoft is poised to debut its new Zune music player later this year to compete with Apple's Ipod. The Zune will be similar in...