Learning to analyse companies and choose your own stocks can be daunting.
After all, sound investing requires a lot of different skills. So many skills that it can be hard to know where to start learning.
Fortunately, there’s one investing skill that makes the rest of it so much easier.
And that skill is… learning how to read financial statements properly.
Once you can read a balance sheet, an income statement and a cash flow statement, your calibre as an investor instantly cranks up a gear.
- Instead of buying and hoping, you become a highly informed investor.
- Instead of taking management’s word as gospel, you’re able to test their narrative against the numbers.
- Instead of needing to trust other people’s analysis, you’re able to do your own work and come to your own conclusions.
If you’d like to learn how to read financial statements, my online course How To Read A Balance Sheet is here to help.
The course lets you look over my shoulder as I analyse all three financial statements for a real life company. By doing so, you’ll learn a process that you can use to analyse any set of accounts.
Click here to learn more about the course. If you’re serious about picking your own stocks, you need to have these skills in your locker.