Financial Statements 101
Money coming into a business
What is revenue?
It puts money into your pocket
What is an asset?
An approach to investing in assets with intrinsic value
What is value investing?
Future steps or directions cannot be predicted on the basis of past history
What is Random Walk Theory?
The ability to step back from you assumptions and your emotions about money and observe them objectively?
What is Financial Intelligence?
What are dividends?
The parameters for spending your money
What are values and priorities?
Warren Buffet's mentor
Who is Benjamin Graham?
The decline of purchasing power of a given currency over time
What is inflation?
It frees you from a dependence on money to handle your life
What is Financial Independence?
Net income per share
What are earnings?
The acronym MER, as associated with mutual funds or index funds
What is Management Expense Ratio
Used to find the company profit
What is the Income Statement?
The theory where investor estimates what investment situations are most susceptible to public emotional influence?
What is castle-in-the-air theory?
Your Life's Energy
Assets minus liabilities
What is equity?
In personal finance terms, all your your assets minus your liabilities
What is net worth?
Used to determine the margin of safety
What is the balance sheet?
Looking at future cashflows and valuing them in today's dollars
What is discounting?
Learning the true impact of your earnings and spending, both on your immediate family and on the planet
What is financial integrity?
Report filed annually by corporations sharing its financial performance for the year
What is the 10-K report?
The closer this is to the market price the 'safer' the investment?
What is margin of safety?
A type of mutual fund with a portfolio constructed to match or track the components of a financial market index
What is an index fund?
An economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets.
What is a bubble?
Our ability to give and share our resources freely according to our values and priorities
What is financial interdependence?