CHAPTER 6Balance Sheet and Cash Flow: The Keys to Long-Term Success
The stock market is filled with individuals who know theprice of everything, but the value of nothing.
—PHILLIP FISHER
A FORGOTTEN MEASURE
The balance sheet and cash flow of a company sometimes are overlooked in the scheme of investing, but arguably, they are the most important data when you are considering a long-term investment. The level of importance you place on these two financial statements ultimately and directly will be related to your individual goals. Most short-term investors are much more consumed with the performance of an income statement, but long-term investors care more about a company’s balance sheet and cash flow rather than shortterm progress.
Unfortunately, ...
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