Guest Author

Machine Learning to the Rescue November 01, 2018

Posted by Baruch Lev in Guest Author, Knowledge Leaders

My previous blog post (“Beware! Estimates Dominate Financial Reports,” October 13, 2018) alerted you the hidden secret of accounting: Most balance sheet and income statement items are based on managerial subjective estimates and projections (like depreciation, asset write-offs, bad debts, expected gain on pension assets, etc.). The…

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Estimates Are Hazardous to Your Wealth. Everyone knows that accounting is boring (not when I teach it, though), but, at least, people think it’s factual. No fake news. After all, accounting comes from counting―counting money, units of inventory, etc. All facts. Nothing further from the truth. Except…

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American Evolutions from Sears to Google October 10, 2018

Posted by Peter Zeihan in Guest Author

Today’s story begins with the once-behemoth that is the American retail firm, Sears. In the last week of September Sears’ stock dipped below $1 a share, reducing the company’s market value below $100 million. Sears may still linger on a bit, but when a big…

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Who Reads Financial Reports? Nobody! August 01, 2018

Posted by Baruch Lev in Guest Author, Knowledge Leaders

For several years I have argued, based on comprehensive statistical evidence, that corporate financial reports―quarterly and annual statements―have lost most of their relevance and usefulness to investors. Corporate earnings, in particular, are no longer a reliable measure of enterprise value change, nor are they indicators…

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