Investment—Accounting Gimmicks Used by Execs to Cook their Books
In 2016 volatile stock market, Bert Dohmen has warned the casual investors that: [1] At the start of a bear market a casual investor, who is easily swayed by the opinions of others, should not listen to the opinion of any analyst with a conflict of interest. They are either with Wall Street or have investment management jobs. Both have big conflicts. None of those people can ever be candid about their opinions of the markets If you want analysis and forecasts without conflicts of interest, find someone with lots of experience who doesn’t work for Wall Street, who doesn’t manage money or sell investments. You never want to guess if what you hear or read is tainted. Accounting Gimmicks Stocks move on earnings, so execs will manipulate earnings. How can you spot their accounting gimmicks ahead of time? In her twitter thread, @FabiusMercurius has shared her thoughts. Here’s a rundown of top shenanigans execs used to cook their books: 1. Using SPVs to hide bad debts cas...