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Anti-Fragile Value Investing With Brian Stoffel

Lead-Lag Live

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The Difference Between Income Statement and Cash Flow Statement

The way Enron accounted for its revenues, it would count revenues for things that would not be collected until far into the future. One of the reasons SolarCity ended up not working now and has not worked out well for Tesla either is because it was based on all of these revenues that would be collected in the future. The cash flow statement much more closely reflects how a normal human being thinks about their finances.

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