The TraderLion Podcast Financial Statement Analysis for Beginners - Brian Feroldi
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Jun 17, 2024 
Brian Feroldi, an expert in financial statement analysis, dives into the fundamentals of understanding balance sheets, income statements, and cash flow statements. He highlights the difference between GAAP and non-GAAP accounting using Walmart as a case study. Listeners learn the importance of analyzing historical data to spot trends and assess a company's growth potential. Feroldi emphasizes evaluating qualitative factors such as management quality and provides insights on balancing risk and reward in long-term investing strategies.
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Startup Experience Sparked Investing Career
- Brian started at a startup medical device company that later became publicly traded and grew to multi-billion valuation.
- That early exposure sparked his interest in investing and financial statement study.
Use A Two-List Checklist To Reduce Bias
- Create two checklists: traits you want and traits you avoid, then score prospects objectively against them.
- Use the checklist to reduce bias and focus on repeatable selection criteria.
Combat Bias With Rules And Allocation
- Study cognitive investing biases and keep valuation and checklist constraints to counteract emotional attachment.
- Allocate less to uncertain outcomes and more to higher-confidence ideas to manage behavioral risk.