O'Reilly logo

Better Value Investing: A simple guide to improving your results as a value investor by Andrew Hunt

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 3. Financial Strength

3.1 Introduction

Understanding financial strength and appreciating its importance is perhaps the most vital lesson for value investors. While assessing financial strength can be a complex and often difficult task, it is a sure-fire way to improve investment results over time.

Assessing financial strength requires a multi-faceted approach. This is especially important to emphasise at the start. Too many investors think that financial strength is just about the amount of debt on the balance sheet, or that it can be assessed by looking at a single metric.

Unfortunately, things are not that simple. There are many potential problem liabilities other than debt, some of which may not even be on the balance sheet. And a ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required