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Educated Investing in the Stock Market | Ep 29

Strategy Meets Finance

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The Statement of Cash Flow

The balance sheet is a critical thing to evaluate before investing in a company because it will help you to understand its financial strength. If the short-term debt plus long-term debt minus cash is greater than net worth, the balance sheet is weak. Companies with a lot of cash and little debt typically have strong balance sheets. But as mentioned previously, you also want to evaluate cash per share.

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