Revisiting the Basics of Stock Investing
Hey Friends. In 2013, my book, “Choose Stocks Wisely,” was published. Its emphasis is on the balance sheet as the starting point for stock investment analysis. Why this emphasis? […]
Choose Stocks Wisely
Hey friends. I hope you are doing well! As we approach another fall season, 2022 thus far has seemed a fast-moving time of great turbulence on most fronts. Yet, here we are and God, just as He did when this year and all those before it had their beginnings, remains in control of His universe. He is not wringing His great Hands nor does He slumber, and He tells all those who look to Him in faith: […]
Meaning of “Assets” and My Investing Approach
Hello friends. I hope my blog post today finds you well!
Last time, I wrote about the nature of balance sheet assets according to the technical meaning assigned by the Financial Accounting Standards Board (FASB). Repeating the definition, assets are “probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events” (FASB Concept 6). Today, I’ll relate the definition to my Scorecard approach of discounting the asset values provided on the balance sheet. […]
Accounting Nature of Balance Sheet Assets
I thought we’d revisit some important balance sheet terminology again. Understanding the accounting meaning of the words which define balance sheet elements is essential to more fully understanding what the balance sheet communicates about the company’s financial position. […]
Multiple Choice Accounting for Expenses
Generally Accepted Accounting Principles (GAAP) include a multitude of options for writing off balance sheet assets. All assets are eventually written off except for land. It’s the only asset viewed as having an “infinite” life. […]
The Accounting “Cost” Principle
The practice of accounting records assets to the balance sheet initially at their cost of acquisition. This means that assets are initially booked at fair value. That is, they are recorded at their cash value in an otherwise arms-length transaction. […]