Author: Ali Alkan
Charlie Munger on “Frozen Corporation”
Red Flags To Look Out For In Value Trap Stocks
Retained Earnings and Company Valuation
I was looking into a stock with solid FCF and NI over the last 4-5 years but on the BS side there was one big red; the retained earnings. This made me ask myself the importance of retained earnings in such a context where although there are improvements, there is still time for retained earnings to move black and the factors that caused this company to have the initial large negative total. I need to look this specific case more but a few minutes into googling I ran into this article on the importance of retained earnings on valuation and wanted to share the link.
Turkey’s Vanishing $8 Billion
Something bizarre is happening on Turkey’s accounting books, and nobody’s quite sure why. – Read more here on Bloomberg: