What about companies that falsify their accounts? Lin Yuan suggested that when investors choose companies, it is best to choose some well-known enterprises that are closely related to people's lives. They do not have to fake, the risk of counterfeiting opportunities and the risk of bankruptcy of the enterprise is much higher!
There has been a strange phenomenon for so many years: after analysis, people have found that some companies bought by Linyuan are likely to be suspected of counterfeiting, but not more but less! Many of the companies that Linyuan bought are said to have "hidden" profits (underreported). In fact, hidden profits tend to give investors "unexpected" benefits.
Lin Yuan often recommends to shareholders and friends, a book dedicated to interpreting corporate financial statements, "Financial Report is Like a Storybook", published by Professor Liu Shunren. The book proposes ten tips to avoid the trap of financial statements, and is the top ten magic weapons for identifying fake accounts! Brief introduction:
1. Pay attention to the warning signs of "condor attack" in the market
2. Pay attention to the warning sign that the stock price is "bullish and falling"
3. Pay attention to the company's directors and supervisors and other insiders to warn of the stock withdrawal
4. Pay attention to the warning that the directors, supervisors or major shareholders occupy the company's funds
5. Pay attention to the warning signal that the company has changed its accounting firm
6. Pay attention to the warning signal of the company channel to change senior managers or cadres in sensitive positions
7. Pay attention to the complex warning signs of mutual guarantee loans and pledges within the group enterprises
8. Pay attention to the warning signs of a sharp increase in the percentage of non-operating profit in profit and loss items
9. Pay attention to the alarm of abnormal changes in accounts receivable, inventory and fixed assets
10. Pay attention to critical news media warnings about the company
