This is a great book. The most valuable lesson I learned from it is to analyze the differences in income reporting to the IRS vs. reporting to shareholders. All companies keep two types of books, one for the IRS and one for shareholders. There are times when an expense can be deducted from a taxable income on the tax return, but it may not be deducted under the GAAP rules. As an investor, I am interested in knowing what a company reports to the IRS and how this number compares to what it reports to shareholders. Since most of the investors do not even bother to check this discrepancy, the dishonest management may deceive investors by hiding certain expenses.
- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market