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Expert: Gaurav Sodhi - The ASX-listed stock that breaks every rule of sensible investing | InvestSMART

Equity Mates Investing Podcast

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The Importance of Understanding Accounting

Many investors don't understand accounting, so they just trust numbers that are presented to them. The profit is a mishmash of different accounting policies and it doesn't really reflect what's happening inside the business or how much that business is worth. My advice is to put that profit statement aside. Look at the cash that's coming in and out. That helps to understand whether they can fund their dividends - which is a huge attraction of this business.

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