Thursday, August 14, 2014

Why Bother With Individual Securities?



As I often say, most investors don’t  bother to read a corporate  prospectus. That’s one of the reasons why I suggest they don’t invest in individual stocks, but that they instead buy low-cost mutual funds that hold securities indexes.

But if they do, they ought to review, among other suggestions, the company. Balance Sheet. This shows the company's assets (cash and inventory) and its liabilities ( outstanding debt). at a stated closing date of the books. Also, they should view  long-term debt. And see how much earnings the firm reinvests in its business. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

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