Here are key takeaways from the book 👇👇
Knowledge sharing initiative Book 4: "The interpretation of financial statements" by Benjamin Graham.
This book was published around 1937 by investing legend Ben Graham. Ben is also regarded as the guy under whom the great Warren Buffett started his investing journey.

Here are key takeaways from the book 👇👇
2.Assets=Tangible (PP&E, inventories, accounts receivable, cash)+intangible Assets (trademark, lease rights, goodwill)
4.Tangible assets are written down through depreciation & intangibles are written down through amortization or impairment
6. Depletion gets applied in commodity businesses like cement, mining, and crude oil.
As they inflated their asset value leading to inflated book value, which was later written off as one-time charges against earnings/profit
8.True value of a company’s assets may be different from the B/s total
10. It is not so essential to invest only in cos. with dominant size, as countless e.g of smaller cos. prospering more than larger ones can be seen in the mkts
High ratio indicates-co. will easily meet short-term obligations
14.Working capital(WC)=current assets–current liabilities
WC makes it easier for a co. to run daily operations & meet emergency needs without taking new financing
15. Quick Ratio = (Current Assets – Inventory)/Current Liabilities
Inventory turnover can be compared on a year-to-year basis. Measures how efficiently the company turns inventories into profits.
18.Valuing companies on book value is majorly applied in banks, insurance cos, & holding companies
23. Net Current Asset Value (NCAV)=Current assets–liabilities & preferred stock.
25. Earning Power of a company = Expected earnings in the future
26. We take current & past earnings as a guide to predict future earnings.
28.Investing requires a balance between facts of the past and possibilities of the future
a) How certain am I that this favorable trend will continue,&
b) How large a price am I paying in advance for the expected continuance of the trend?”
Credits @FinnacleAcademy
Here is the book link: https://t.co/fjfj11MKLf
More from Investment Books
More from Trading
Collaborated with @niki_poojary
Here's what you'll learn in this thread:
1. Capture Overnight Theta Decay
2. Trading Opening Range Breakouts
3. Reversal Trading Setups
4. Selling strangles and straddles in Bank Nifty
6. NR4 + IB
7. NR 21-Vwap Strategy
Let's dive in ↓
1/ STBT option Selling (Positional Setup):
The setup uses price action to sell options for overnight theta decay.
Check Bank Nifty at 3:15 everyday.
Sell directional credit spreads with capped
A thread about STBT options selling,
— Jig's Patel (@jigspatel1988) July 17, 2021
The purpose is simple to capture overnight theta decay,
Generally, ppl sell ATM straddle with hedge or sell naked options,
But I am using Today\u2019s price action for selling options in STBT,
(1/n)
@jigspatel1988 2/ Selling Strangles in Bank Nifty based on Open Interest Data
Don't trade till 9:45 Am.
Identify the highest OI on puts and calls.
Check combined premium and put a stop on individual
Thread on
— Jig's Patel (@jigspatel1988) July 4, 2021
"Intraday Banknifty Strangle based on OI data"
(System already shared, today just share few examples)
(1/n)
@jigspatel1988 3/ Open Drive (Intraday)
This is an opening range breakout setup with a few conditions.
To be used when the market opens above yesterday's day high
or Below yesterday's day's
#OpenDrive#intradaySetup
— Pathik (@Pathik_Trader) April 16, 2019
Sharing one high probability trending setup for intraday.
Few conditions needs to be met
1. Opening should be above/below previous day high/low for buy/sell setup.
2. Open=low (for buy)
Open=high (for sell)
(1/n)
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