FINANCIAL SHENANIGANS (BY HOWARD SCHILIT)

[@TheSwedishInvestor]

Learn how to analyze financial statements like a true detective: bit.ly/2QTxKkk

[@F_Dot_]

I just wanted to say on behalf of all us subscribers that we appreciate the time it takes for you to review all these books.

[@TheSwedishInvestor]

Cheers F Dot (and all the subscribers you included)! Love the support 😁

[@VykintasGlodenis]

Totally agree!

[@Erika2]

Just want to say thank you for spending a tremendous amount of time creating these videos for us! As a small KZbinr I know how much time it takes to create videos, so I have a lot of respect for the effort you put into these!

[@RossCampoli]

The Smartest Guys in the Room has to be one of my favorite business books! Exhilarating rise and devastating fall! Misrepresenting operations with shady financial reporting is an unfortunately common circumstance! We need lots of Sherlock Holmeses to solve all these shenanigans! Great video as always, Swedish!

[@RonYates1]

I havea few people in my circle who are millionaires in secret because they invested and re-invested. They invested over 20 - 30 years and it compounded. They don't have to work. Money coming in every month. They have inspired me to do the same and I can tell you for sure that it works!

[@MRZEROTOINFINITY]

Great advice on how to avoid those investing land mines 🔥 Just keep it simple and always invest in what you know 💡 Don’t buy into the headlines! - Michael DeRiso

[@FinancialWisdom]

Well done again sir....

[@ahhu.]

This channel is so valuable and this book is so essential. Thank you so much 🙌🏽

[@Dfm_Sushil]

We love your channel. 👍

[@adarshmahapatra4775]

I might just pass my Financial Statement Analysis exam because of this 😊😊😊

[@krymyLR]

I just discover your chanel, this is the first video i have watched; I hope the rest are same quality at least. Kudos!!

[@TrailRunnerLife]

Charlie Munger's critique of derivative transactions (where both parties show expected profits, which impossible under such an agreement), is perhaps the most glaring example of shortcomings in the GAAP system itself - even in the absence of malfeasance. While most accounting degree programs put little emphasis on these type of "theoretical" issues, and mixed incentives exist to rectify them within the industry, there is hope in the move to REA models in AIS will help future audit firms more faithfully reflect the economic realities of the companies they assess.

[@wetradewaves]

Always great content, keep it up.

[@sarthakkgangwani762]

Hi Erik, I completed Preston's course on value investing few days back and would like to know a few things. I don't earn any money currently, so my father has said that if I want to invest, I will have to prove that I know how to invest by earning money in a virtual stock market ( it's like a game). Now after Investing there for around two months, I got to know that all industries behave in very different ways. For example- in India, for a big company with good moat business in tertiary sector is a great buy for a pe ratio of 40( and book value of 2) but a graphite manufacturer is a bad buy for a book value of even less than 1. So my question is can you tell me a book or video which explains how different sectors and industries work and what kind of pe ratio and p/bv is nice for them ( as they vary a lot). Also what do you think is the next step for me as a value investor??

[@TheSwedishInvestor]

Hey Sarthakk Gangwani! As always - thank you for your support! There's been a lot on my plate lately so I haven't been able to respond to your email yet, but I will in time. I would recommend that you get a job or get the money from somewhere else than your father. It takes years to get a solid track record. If there's a market crash, you cannot prove to your father that you are worthy of any money at all, even though you may well be. Regarding the industries and their different valuations, it's a tough one. I'd pick a company together with it's main 4-5 competitors and compare them that way rather than looking at the whole industry because its more manageable, and usually it's apples and pears comparisons even within a certain industry if you look at the wrong companies. This, I would only do once I've screened for stocks using some type of quantitative model, like Joel Greenblatt's Magic Formula. Read One up on Wall Street, Common Stocks and Uncommon Profits, and The Little Book that Beats the Market :)

[@sarthakkgangwani762]

@@TheSwedishInvestor but if you use the magic formula,you will automatically filter companies with high pe ratio. And companies with high pe aren't necessarily bad companies.( If other aspects are good especially moat). So you would be leaving out a big chunk of good companies.

[@namishsingh6831]

@@sarthakkgangwani762 companies with high PE are great too but they won't necessarily be a good investment inspite of being a great business because " the future value of every investment is a function of it's present price , higher the price you pay lower your returns " ---ben graham

[@namishsingh6831]

Btw , i have the same condition too . No money to invest and father hasn't agreed to give any of his 🤣 and virtual simulators don't work as they are made for traders

[@robertmelvin5203]

Very informative. Personally I would have benefited from how often do these issues occur and other examples other than Enron, Heinz and H&M. This may be more challenging. I loved the simple breakdown of H&M at the end in #1.

[@saveliikholin3541]

so much appreciate your work and effort you put in these videos 👍 thrilled to see your take on the real gem 🔥 "Good to Great" by Jim Collins

[@GenExDividendInvestor]

Its harsh to hear when shady executives screw employees, shareholders, and the public, by doing shady financial things.

[@weight1000]

Thank you

[@VykintasGlodenis]

Great video!

[@mddij]

Nice! This way I do not have to read the book 😀. It is scary though how easily you can be deceaved.

[@weigh2playa825]

Yes it iz.

[@djpuplex]

You should do the little book of common Sense investing by John c. Bogle next. Or maybe even the Bogleheads book.

[@rafaelbawono8437]

thanks a lot!

[@milindbidve8250]

Your video's are very useful and easy to understand pl.make more and more such video's thanks

[@TheSwedishInvestor]

I will try my best to increase the output 😁

[@ralph7862]

14:12 Legend aRcHitEct

[@donif.6193]

Hey Swedish Investor, first of all I would like to thank you for the time and effort you put in, to create such helpful and informative videos about financial statements. Even though I watched only 3 Videos, I've learned more than in my whole Bachelor Degree's. However, at 16:22 you're telling us, that H&M balance sheet doesn't look good at all, although the Gross Margin, EBITDA Margin and Net Margin aren't actually changing much. I'm asking myself why these numbers are bad, if they don't differ mutually much. Did you already compare them with the competitors? Moreover, I don't understand why you set all entities (after 2016) in relation to the year 2016 - is this a must?

[@captainawasome8985]

Apply this to politicians who talk fondly about challanges. ;)

[@booksbrains1249]

Please provide real examples of every concept u mention like u have done here .it is helping . Thanks

[@tomiesto240]

Lol this sounds like the most boring book you've ever read... Thanks for making the sacrifice, I love your channel

[@TheSwedishInvestor]

Haha, it's a tough one to get though, but it's also the one where I've learned the most since I read Security Analysis I think 😊

[@nicknatour2789]

Love your channel. Not my favorite book

[@smilebro100]

Isnt #1 against gaap rules?

[@zink5664]

Nice

[@lorenzocastagno1305]

thanksssss

[@fnaske]

What did Betsson do wrong? It has fallen for years.

[@TheSwedishInvestor]

I think the short answer is tough competition, and now, more recently, regulations that hit profits

[@piotrmaj6706]

You didn't mentiln the Boenish coeeficient which is a usefull tools in finding shenenigans.

[@robertmelvin5203]

Interesting, I had to look up "boenish coefficient". It gave me a headache, I'll try again later.

[@piotrmaj6706]

The Boenish coeeficient is calchlated automaticly for free by some sites like for example GuruFocus.com But we weary it does not apply to the financial sector.

[@qiushihu9443]

Why is Brian a bear.

[@Larry82ch]

Because the dog is probably under copyright

[@kentwoodard2877]

Swedish bias