Showing posts with label Susan Crosson. Show all posts
Showing posts with label Susan Crosson. Show all posts

Tuesday 13 April 2010

Investors and Accounting

Buffett encourages investors to develop a good knowledge of accounting.

In a Berkshire shareholders' annual meeting, a New York University MBA student asked Buffett for his advice on how to develop Buffett-like skills.  In his response, Buffett mentioned that the student should take as many accounting course as possible.  

Remember that you are a consumer and not a prepare of financial information.  Act like a detective trying to understand the company's business from reading financial statements.

Buffett reads a lot of financial reports; and for him, perhaps, that is like reading detective novels.  As a reader of financial statements, you could have fun discovering behind-the-curtain stories.

Accounting numbers are based on a large number of estimates, and hence, they are not really hard numbers.  Yet, academic  research shows that long-short investing strategies can often be developed by using accounting knowledge.  

When you study financial statements, be a skeptic.  Most accounting numbers are reliable, but you must remain vigilant.  


Related readings:



Videos-Financial Accounting by Susan Crosson

Where is Ze Moola



Visit this site to see how this blogger dissect the companies through using his accounting and other knowledge. 

Friday 9 April 2010

Videos-Financial Accounting by Susan Crosson

Videos-Financial Accounting by Susan Crosson
Click here for all the videos



Accounting Basics 1- Where did Accounting Come From?






Cash Flow 3 Investing Activites-Investments




http://www.youtube.com/user/SusanCrosson
Financial and Managerial Accounting topics covered in college Accounting courses are explained. Offerings also include videos about accounting software choices.