The Footnotes and Supplementary Information to Financial Statements
The notes are an integral part of the financial statements, and the statements can be interpreted only with a thorough reading of the notes. A lot of information on the financial statements are embellished in the footnotes.
You will see that the footnotes are supplemented with a background discussion of the firm - its strategy, area of operations, product portfolio, product development, marketing, manufacturing, and order backlog. There may be a discussion of regulations applying to the firm and a reveiw of factors affecting the company's business and its prospects. Details of executive compensation also are given. This material, along with the more detailed formal annual report, is an aid to knowing the business but is by no means complete. The industry analyst should know considerably more about the industry before attempting to research a company.
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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