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- The Simplifying Analyst #8:
The Simplifying Analyst
Read Time: 3 min
This week's issue is a bit different. I am going to share 1 insight about finance and 3 curated quality content pieces to help you grow your knowledge of finance.
A thought I had this past week, that the growth that companies deliver to shareholders each year is nothing more than the continuous addition of value. When companies grow, it is because the employees there; have grown their skills, their knowledge, their ability to be more efficient.
If successful, the growth is shown in the financial statements.
However, growth is not perpetual. Growth can slow or go negative. This slowdown does not comes from the employees though. It comes from the users. Once users see a company not adding value anymore the company will stop growing.
Users perceive growth as the sum of all value creation. Even if users are incorrect in their judgement of value creation, the perceived value has decreased and growth slows.
My favorite content this week.
The users below published some great content about finance this week. Here are my favorites.
Profits don’t fuel your business, cash does.
Use this tool to better understand your cash:
— Kurtis Hanni (@KurtisHanni)
12:09 PM • Aug 9, 2022
1/
Get a cup of coffee.
In this thread, I'll help you understand how the TIMING of Cash Flows within a business can have a BIG impact on the returns that shareholders get from owning the business.
— 10-K Diver (@10kdiver)
12:29 PM • Aug 7, 2022
My 5 best pieces of advice for new investors
You probably aren’t using all 5
Thread🧵
— Dividend Hero☀️ (@HeroDividend)
2:09 PM • Aug 3, 2022
I would like to know more about my subscribers. What is your favorite place you've visited? I am in Colorado right now and it is absolutely beautiful.