A reader posts a question
I haven’t started investing yet but can’t wait to do so once I get a job. I am still developing my investment strategy and plan.
I think I am able to do basic valuations and financial modelling. BUT the one thing I can’t get my head around is: Linkages between financial statements.
This is the most important issue that is not being discussed here. I agree with V4Value that learning financial statement analysis would be an excellent idea. Unfortunately, there doesn’t seem to be any good, free online courses such as there are for valuations. I have been able to find this course which comes close to what I am looking for: http://ocw.mit.edu/courses/sloan-school-of-management/15-535-business-analysis-using-financial-statements-spring-2003/lecture-notes/
But no video lectures!
CSInvesting Accounting Sources
Thanks for your dilemma and your excellent link above to the MIT accounting course (free). Here are two books (of course, in the VALUE VAULT. Email me at firstname.lastname@example.org with VALUE VAULT in the subject line and I will send a key within 48 hours).
Ben Graham’s Classic Book: Interpretation_of_Financial_Statments-1
Tracy’s book on how financial statements link together: How_to_Read_a_Financial_Report
Videos on Accounting
Here is one link for an accounting lecture on common-size financial statements:
http://www.learnerstv.com/video/Free-video-Lecture-1170-Management.htm (Click on videos at the top of the web-page for videos on accounting and many other courses) A great series of videos for a Saturday night date. Seriously, another supplement to what you learn from books. The next step is to go through a company annual report of a company that interests you.
Short lectures on financial topics or many other subjects: http://www.khanacademy.org/