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The Interpretation of Financial Statements, by Benjamin Graham.    It was Albert Einstein who said, "Everything should be made as simple as possible, but not more so."  In the spirit of Einstein's admonition, this short book, originally written by Graham in 1937 and last revised in 1974, was designed to function both as a succinct, stand-alone elementary work and as a complement to Security Analysis, the pioneering scientific treatise of modern investment analysis.  For those who are not already schooled in financial statement understanding and analysis, this book is a great place to start.  Graham explains the nature of balance sheets and income statements, and he covers the various categories of corporate assets and liabilities.  He also explains financial ratios, depreciation and inventory valuation, and earnings calculations, among other essential topics.  In the final analysis, it's impossible to make much headway in any discipline without comprehending the language of that discipline--and the language of investing is financial statements.  Einstein would have enjoyed this succinct and helpful book.

ISBN: 0887309135
Format: Hardcover, 144pp
Pub. Date: April 1998
Publisher: Harper Information




"This reissue of the classic 1937 edition ... is right on time.... [The] basic study of financial statements by the average investor is more important than ever."

Michael F. Price