Additional Uses of Public Company Annual Reports
My last blog told about cluttered mailboxes with unread and irrelevant financial reports, but now, I want to mention some benefits.
The Berkshire Hathaway annual report, with Warren Buffett’s letter and opinions, is a masterpiece in understanding today’s markets and his successfully proven investment philosophy. This is a “do not miss” report. Each year you can download it from SEC files or call the Company to have a copy mailed to you.
Others have extensive and well-written economic, financial and industry analyses, outlooks, and risk factors that can be very helpful to those working in or concerned with an industry. The charts and graphs indicate key areas of importance that can measure the growth of a business in units, resources, transactions or customers. Dollar sales volume can increase while units sold decrease indicating potential loss of market share or product relevance. Trends are also revealing and should be studied.
Some reports have great graphics of their products. Sitting with a five-year-old child or grandchild while going over an annual report for a construction or farm equipment manufactureror toy or entertainment company can be a subtleintroduction to business and investing.
Sometimes, when you have lemons, you could end up with tasty lemonade and sometimes, you get stuck with a sour taste. It’s how you use it that determines the value!
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