6 of 7 people found the following review helpful
When 'Behind' Should Be 'In Front' For Investors,
This review is from: What's Behind the Numbers?: A Guide to Exposing Financial Chicanery and Avoiding Huge Losses in Your Portfolio (Hardcover)
Long-only investors will benefit greatly from the book's insights and especially how to get out of their losers quickly by following a few simple fundamentals on the balance sheet and income statement. In my opinion, this is a must-read for investors who have trouble letting go of failed investments and who have come to understand the hard way that "time does NOT heal all wounds." Cisco investors holla!
The authors spend their days more like forensic accountants looking for the chicanery (that is a lot more prevalent that you may care to believe). I found the authors' research head-shaking in that regard. There are far too many accounting tricks that publicly traded companies use in order to make their quarterly numbers. And sooner or later that catches up with them.
One company he writes about has recently offered big discounts to generate revenue for the near quarter, but that's 'robbing Peter to pay Paul' according to the authors. As they state, "eventually there will be an earnings shortfall, like there always is with companies like this, and the stock will tank."
By understanding the tactics, you the investor will have side-stepped such a debacle and you will have done the first thing you need to do in any investment process: preserve your equity.