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The Interpretation of Financial Statements

By: Benjamin Graham - Read: July 31, 2024 - Rating: 6/10

Straightforward guide to interpreting the financial statements of publicly traded company. Graham shows you how to think about each of the items on the balance sheet and income statement, and the pitfalls that can mislead prospective investors.

Analysis of financial statements is far from sufficient to make good investment decisions, but it is a necessary tool for an investor to prevent avoidable losses, and to evaluate when a stock may be undervalued.