( 9 reviews )
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Posted: Aug 12 2009
This book is not a quick read. It has almost 400 pages. But, it elevates an investor to a completely different level. It is all about cash flow. It teaches investors about cash flow classification between operating cash flow, investing cash flow, and financing cash flow. Sometimes, there are gray areas where certain inflows and outflows can be categorized in different categories. Managers can also manipulate numbers around to classify something as an operating inflow when in reality, it should be more classified as an investing cash flow or financing cash flow. But, I would warn readers that this is not a book for beginners. I would definitely have a hard time following along had I not taken accounting courses in college. - Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market
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Posted: Apr 2 2009
My main complaint about this book is its poor language. It is written in that awkward and abstract kind of language that some academics like to use, but which is hard to read for everyone else. Here's a typical example: "... cash paid to purchase or proceeds received from the sale of investments in debt or equity securities held for trading purposes is reported as operating cash flow." You can decode a few phrases like this here and there, but when an entire book is written in such a language it takes an immense effort to read. I hope the authors will do a major rewrite of this book and greatly improve its clarity as it has some very interesting and important points about the analysis of financial cash-flow statements.
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Posted: Apr 2 2009
My main complaint about this book is its poor language. It is written in that awkward and abstract kind of language that some academics like to use, but which is hard to read for everyone else. Here's a typical example: "... cash paid to purchase or proceeds received from the sale of investments in debt or equity securities held for trading purposes is reported as operating cash flow." You can decode a few phrases like this here and there, but when an entire book is written in such a language it takes an immense effort to read. I hope the authors will do a major rewrite of this book and greatly improve its clarity as it has some very interesting and important points about the analysis of financial cash-flow statements. In the meantime you may wish to take a look at the book Free Cash Flow by George Christy instead.
