O'Reilly logo

The Zulu Principle: Making extraordinary profits from ordinary shares by Jim Slater

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

4. Creative Accounting

In the last chapter, I elaborated upon the first three criteria of my system for investing in dynamic growth shares. To keep the explanations as simple as possible, I resisted the temptation of distracting you by suggesting that the earnings of a company may not be all that they appear. Now we come to fine tuning and must look at the dangers of taking annual earnings at their face value:

Creative accounting

Some members of the accountancy profession might argue that accounting is an exact science. Others see the presentation of Balance Sheets and Profit and Loss Accounts as more of an art form. Despite all the Institute of Chartered Accountants’ recent efforts to improve accounting standards, there is still no doubt ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required