Today: Quality of Balance Sheet Never More Important
Hey Friends. I hope this post finds you well.
As you know, my book, “Choose Stocks Wisely,” emphasizes the key role the balance sheet plays in assessing risk. If one wants to see how sturdy a company is financially, how able to weather a financial storm, how able to take advantage of opportunity that presents itself, etc., that person will surely seek out the information found on the balance sheet. It can’t be found on the income statement or the statement of cash flows. These latter 2 reports give a person information on recent business activity that may provide some sense of a business’s future prospects and their possible impact to the balance sheet. But only the balance sheet says “here’s where things stand today.” […]