How do you follow your investments? If you’re like a lot of people, you keenly await quarterly earnings announcements to track projected versus actual growth in Sales, EBITDA, Net Profit, EPS (Earnings per Share). Positive surprises mean high fives for the minor bump up in stock price. Negative surprises are explained with a range of reasons including “delayed project approval”, “rural distress”, “rising raw material prices” and so on. If the reason for the miss makes sense i.e. they seem significant enough that the company couldn’t have done much, you shrug and move on. The problem with Salient-Recency We use a
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