27. How to read a cash flow statement

Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we evaluated the cash flow statement of Walmart, Sears, Intel, and Kodak. The lesson provides good and bad cash flow statements so students could see the difference between risky and healthy companies. One of the key factors learned in this lesson was the importance of the operating activity and the operating activities section of the statement. Since the investing and financing activity are dependent upon the operating activity, it became obvious this section is the lifeblood of any business.

Comments

1. Preston one day when i get decently well off from stocks.. i will make a sizable donation to your company Inshallah(if god wills). Man you did a great work with these videos.
2. where do i find information about when a company pays out dividends ? eg quartley ,semiannually or yearly
3. im now gonna start watching this on and on.. now on my lesson 2.. thanks :)
4. you said that if a company buys back it's shares, it's a good thing for the shareholders, because their shares are more valuable. Is that right? I thought that a company can simply release let's say 20% of their bussiness as shares. If they buy back 10%, they will own 90%, but it should have absolutely no affect on value of the remaining shares. If it is not correct, any company could just release millions of shares making your shares worthless due to inflation and make itself the owner of 99.99% of the business for free.
5. thank you man! please tell me how can I interpret "Issuance(Retirement) of Debt"
6. Hello, is it a good sign if a company is earning from its investing activities ?
7. So helpful. Back in school to get my bachelor's degree. Thanks for all the clarity!
8. Ola..Morningstar site does not show negative numbers in red color or with the - sign. Numbers between parentheses means Negative?? Thank you!!
9. Preston, 26 and 27 are out of order on the playlist. Great work btw. I haven't found anyone better.
10. All your lectures are awesomeeeeee!!!!!!!!!!!!!! Thanks so much for making them for us!!!!!!!!!!!!!!!!
11. Excellent education! One small observation. The Sears Holding Company example in the video shows updated, restarted and reclassified statements, all for the month of March 2012 so we can not conclude a multi year analysis/trend.
12. 1000000k likes....wonderful lessons ...<3
13. Thank you, very instructional
14. Preston: In INTC income statement in the video, one data point suggested large buy-back of shares by the company. However, same year, the statement suggested large issuance of bond. Is this an indication of debt being cheaper source of capital at that moment (while maintaining other things like balancing debt and equity proportions).
15. Yesss, I'd just finished course 2.  One more to go.  I can't thank you enough for what you're doing!!
16. So, Is net change in cash the profit, if positive?
17. Can't wait for the next video!!!
18. Another great video Preston, just wondering if it cut short? Cheers,
19. more detail!
20. This is amazing!  Thanks for this.