Whether one invests in common stocks or not, the relevance of a healthy balance sheet to the economic welfare of society is very significant. When growing profits by any means possible becomes a norm, the balance sheet of corporate America will reveal declining financial health and we all become threatened by the growing debt burden.
If you have been following my blog, you know I did a series of posts back in May and June that dealt with the dangers of excessive financial leverage and how balance sheet health is essential even though there were some articles in the financial press at that same time saying that companies with weak balance sheets, reflecting a lot of debt, were outperforming companies with healthy balance sheets.
Rather than providing links to the whole series of posts I did on this matter of excessive financial leverage, I’ll just share one link to a very brief video post from back in July. Following that link, please check out the second link below which is a CNBC video just over a minute long called “Warning Signs From Corporate Debt” from this past week. In the CNBC video, be sure to note the comment toward the end of the video about the Balance Sheet.
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