Is it worth your time as an individual investor to read carefully through the financial statements and also to compute ratios and make other interpretations

I doubt it. The women's investment club was very surprised by this answer, and I don't blame them. The conventional wisdom is that by diligent reading of financial statements you will discover under- or overvalued securities. But, the evidence doesn't support this premise. Market prices reflect all publicly available information about a business, including the information in its latest quarterly and annual financial reports.

If you enjoy reading through financial statements, as I do, fine. It's a valuable learning experience. But don't expect to find out something that the market doesn't already know. It's very unlikely that you will find a nugget of information that has been overlooked by everyone else. Forget it; it's not worth your time as an investor. The same time would be better spent keeping up with current developments reported in the financial press.

Money Attraction Secrets

Money Attraction Secrets

Discovering The Laws Of The Right Financial Blueprint. I bet you're scared, angry and maybe even confused. These are perfectly rational and appropriate reactions to the worldwide credit crisis that erupted in 2008 and sends shudders through every home in the United States.

Get My Free Ebook


Post a comment