Financial Statement Analysis
"We are living in a Big Data World," Dan Joldzic, CFA, says. "No single analyst or team of analysts can capture all the information on their positions."
ESG assurance must replicate the knowledge and experience of external audit while avoiding its pitfalls.
Risks can be known in advance. You just need to be curious enough.
Cost of capital is a tenuous concept. Charlie Munger amusingly calls it a “perfectly amazing mental malfunction.”
A key lesson from the "Enron of Germany": If you see something, say something.
GAAP sometimes misrepresents business reality. We can use that fact to generate some alpha.
Dishonest companies tend to leave five textual fingerprints in their communications that differ from those of more truthful firms.
You can find significant alpha in the mechanics that drive GAAP accounting.
Technology can give investment pros a huge advantage in evaluating the truthfulness of company communications.
The explanatory power of the financial information reported to investors for market valuation has plummeted in recent decades.