

121: Red Lines, Accounting Gimmicks and Management Gloss: Why You Need to Understand Balance Sheets to Avoid Portfolio Disasters (With Steve Clapham, Founder of Behind the Balance Sheet)
Nov 30, 2023
Steve Clapham, veteran analyst and investor, discusses the importance of reading balance sheets in investing, the decline in effective investment training, and the significance of cash flow statements. He highlights the abundance of opportunities on the buy-side and shares case studies of 'creative accounting' including Patisserie Valerie and Wirecard. The podcast also explores the shift in power between buy-side and sell-side, the need for financial literacy, and the key to successful investing through balance sheet analysis and questioning everything.
Chapters
Transcript
Episode notes
1 2 3 4 5 6
Introduction
00:00 • 2min
Transition to City and Importance of Financial Literacy
02:11 • 8min
The Shift in Power and Quality in Research and Investment Management
10:22 • 4min
Understanding Balance Sheets: The Key to Successful Investing
14:23 • 9min
Tax Rates, Valuations, and the Need for Financial Training
23:38 • 7min
Refining Entry Points and Portfolio Management
30:33 • 9min