How to Read a Balance Sheet – Simple Format

Reading a balance sheet is instrumental in understanding the business’s financial position. This particular financial report is a snapshot of a moment in time. It can change dramatically in a minute so understanding the perspective of the report and its respective sections will help you to be better informed.

What is a balance sheet? It is considered one of the five basic financial reports of any company. In reality, most folks can only interpret the two most fundamental reports, the Profit and Loss and the Balance Sheet. The other three reports require

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Introduction to Value Investing
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Principles of Value Investing

Value investing is defined as a systematic process of buying high quality stock at an undervalued market price quantified by intrinsic value and justified via financial analysis; then selling the stock in a timely manner upon market price recovery.

Value investing is by far the absolute best method to use with your portfolio. The only method that can beat value investing is 'Speculation'. And honestly, speculation is synonymous with gambling. Look at this site's Value Investment Fund results in comparison to eight major indices.

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