4

Assessing companies – issues and opportunities

In this chapter we will look at some of the most important issues surrounding company accounts and management, and also at three points in the life of a company where the potential for profits or losses is especially high. Most new investors are not familiar with business, and it takes years of study and experience to really be able to read between the lines of company accounts, so this chapter will focus on the general principles and problems rather than going into great detail about financial analysis. (For a list of excellent books that provide this information see the further reading section at the end of this book).

This chapter covers:

  • Financial statements
  • Corporate governance
  • Investment ...

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