Quality of Earnings: Uncovering Hidden Red Flags in Stocks w/ Clay Finck (TIP672)

Investors often take company numbers at face value, but this can lead to significant mistakes.

We reviewed the book "Quality of Earnings" by Thornton O'Glove, a Wall Street veteran known for red flag deviation analysis. This essential guide helps us understand a company's true earnings, aiding us in avoiding costly mistakes as investors.

IN THIS EPISODE YOU’LL LEARN:
0:00:00 - Intro
0:06:23 - Don’t trust your analyst
0:10:00 - Lessons from short seller Jim Chanos
0:11:41 - Don’t trust your advisor
0:14:28 - How to analyze the shareholder letter
0:19:02 - The downfall of Coleco’s stock
0:23:46 - Red flags regarding Differential Disclosures
0:26:12 - Nonoperating and nonrecurring income
0:27:51 - Quality of Earnings
0:32:17 - Analyzing accounts receivable & inventory
0:38:13 - Debt and cash flow analysis
0:41:51 - The impact of dividends
0:45:38 - The pitfalls of GAAP Accounting
0:54:50 - Outro

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📖 BOOK MENTIONED:

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