Cash flow is key to investment success

The cash-flow figure in a company's profits statement attracts little attention. But it could save you from making an investment disaster. Tim Bennett explains how.

One of the biggest threats to your wealth as an investor is the risk that one of your stocks goes bust, taking all of your capital with it. How can you avoid this nightmare scenario?

Judicious use of stop-losses to get you out of a doomed position is one method, but it's better to avoid buying a dud in the first place. One specific page in a set of accounts can help you do this.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.