“Jeśli rozwiniesz swoje umiejętności inwestycyjne i jeśli inwestujesz mądrze, to pozwoli Ci to w przyszłości żyć lepiej i zapewnisz sobie w ten sposób godną emeryturę na przyszłość. Niestety większość ludzi nie ma ochoty uczyć się jak inwestować swoje pieniądze, więc dlatego ufają na ślepo tak zwanym profesionalistom, którzy są ubrani w drogie i eleganckie garnitury, są dobrze uczesani i pięknie mówią. Drogę, którą wybierzesz, zależy wyłącznie od Ciebie.”

It is unlikely that anyone would disagree that in order to understand the text above one has to know the language in which it is written. While it may seem obvious to everyone, this kind of logic does not transfer well to the field of investing. Many people choose to invest their entire life savings into stocks, yet they do not take the time to learn basic accounting, which is the language of business.

Managers of various companies communicate with shareholders about the successes and failures of their business endeavors through financial statements which include the balance sheet, the income statement, and the cash flow statement. The preparation of financial statements is guided by various accounting guidelines. When buyers and sellers of stocks are truly involved in buying and selling businesses, it is critical that they know how to read and understand financial statements so that they know what it is that they are buying or selling.

Unfortunately, many books on the topic are either too simple, too difficult or are not targeted toward investors. Because of this, I have written a new e-book, The Basics of Understanding Financial Statements, which is available for FREE to new subscribers of my blog. Those who are already subscribed to my blog will receive a free copy via e-mail. I look forward to sharing my knowledge of accounting as it applies to investing with you. To download my e-book, just subscribe to my blog.