valuation dates and book values, page-48

"Also safer to make forecasts from cashflow statement than P & L. statement."


A single period cash flow statement isn't worth much (unless reconciled to Net profit). For instance you can manufacture a positive operating cash flow by, for instance, not paying your bills - I am not suggesting this is the case here.

Many significant company transactions do not involve cash, eg an all scrip takeover, you can increase assets and revenues without disbursing a single dollar.

Yes, you need to be able to 'read' the numbers, but it is much more important to know what the numbers 'mean'. That's what sets successful investors apart, the rest become accountants and CFO's


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