MTI009: Earnings Manipulation and Financial Statement Analysis with Hewitt Heiserman

Earnings manipulation can make a company look very profitable, while in fact they are bleeding money. This week’s guest, Hewitt Heiserman, is an author of the book It’s Earnings That Count and an expert in financial statement analysis. He devised a way of spotting in advance if something is about to go wrong with a company, to help you avoid the next Enron, but also if it is likely to sport above average returns in the near future, using his proprietary Earnings Power Chart.

During the discussion part of the episode, the panel members discuss how they learned to read financial statements, the importance of checklists for investors, the power of insider ownership, and much more!

 

Resources mentioned:

It’s Earnings That Count – Hewitt Heiserman

Cash Flow & Security Analysis – Kenneth S. Hackel

The Quest for Value – Bennett Stewart

American Association of Individual Investors (AAII)

Economic Value Added (EVA) article

It´s Earnings That Count blog post by Nick Kraakman

Ben Graham and the Growth Investor presentation (PowerPoint)

Warren Buffett’s Letters to Stockholders

The Outsiders – William Thorndike

Henry Singleton and Teledyne case study

Money Masters – John Train

Intrinsic Value Spreadsheet

Financial Shenanigans – Howard Schilit

The Checklist Manifesto – Atul Gawande

Value Trap Indicator

Beating the Street – Peter Lynch

Securities and Exchange Commission (SEC)

What Works on Wall Street – James O’Shaughnessy

The Intelligent Investor – Benjamin Graham

Simple Balance Sheet Analysis by Andrew Sather

Morningstar

YCharts.com

 

Panelists In This Episode:

For a quick bio of each of our show participants, head on over to our panelists page.