Anurag’s Reviews > Security Analysis: The Classic 1951 Edition > Status Update

Stable Cashflow -> More predictability -> Less risk;

Cash can't be cooked by a company.

Value of analysis diminishes as the element of chance increases.

Four fundamental aspects to look at for security analysis are: security, price, time and person. The note on security means that the character (terms,enterprise) of the security can make it worth investing despite lack of its charm (status).

Four fundamental aspects to look at for security analysis are: security, price, time and person. The note on security means that the character (terms,enterprise) of the security can make it worth investing despite lack of its charm (status).

Key Message : Companies with stable cashflow are easier to forecast and hence less risky. Cash is King - Companies can cook books but can't cook cash.