Value Ideas Blog
Value Essentials: Financial Shenanigans

Welcome to a further piece of our ‘Value Essentials’ series. ‘Financial Shenanigans’ is written by Howard M. Schilit, PhD, CPA and Jeremy Perler, CFA, CPA. It presents an empirical journey through many accounting tricks in an entertaining way while teaching its readers what to look for when analyzing balance sheets. This blog post is by no means a summary of all the facts given in the book. It is merely meant to give you an idea and remind you of the key lessons. I would highly recommend reading it as soon as possible, as it is also part of our recommended reading list that you find on our website. After all, there are passages that show the recklessness of managers and the absurdity of huge frauds (that have stayed unnoticed for decades) which makes the reading experience quite joyful.

  financial shenanigans  

NOTE: In this post we directly quote the book. If you find this interesting, please consider buying it (e.g. via this link).

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For us, it is self-evident to share our knowledge about investing, because we have learned so much from people out there who shared their knowledge altruistically. For this reason we upload our investment theses and what we read in the process. So here are some links what we think is helpful for you and your thoughts:   A great blog with a post on the current stock market bubble:  http://csinvesting.org/2013/11/25/ding-ding-ding-the-bells-are-ringing-search/   An interesting article in The Economist on how uncertainty dulls investors: http://www.economist.com/news/finance-and-economics/21589859-how-economic-uncertainty-dulls-investment-holding-tomorrow. It is based on this scientific paper (in case you love economics): http://www.stanford.edu/~nbloom/roes_7923.pdf   read more