In this week’s video Ed looks at the difference between profit and cash flow. Most people don’t understand this distinction but it’s actually a fairly simple concept. And once you’ve got to grips with this, you’ll be well on the way to becoming a successful stock picker.
In this video, Ed Bowsher explains how to calculate a company’s profit margin, why it is the best way to evaluate profitability, and how you can use it when analysing a company.
Hedge funds perform a valuable service by weeding out overvalued shares. In this video, Ed Bowsher explains some of the things they look for when they’re hunting for shares to short.
In his latest video, Ed Bowsher looks at the current ratio, which can help you see whether a company has sufficient resources to pay its bills in the near future.