389 | The Language of Business

In this episode: interpreting financial statements, utilizing financial statements, balance sheet statements, income statements, cash flow statements, and valuing a business for its purpose. Have you even wanted to learn the language of business? Not in a literal sense, by that we mean understanding the ways businesses communicate what their real value is to the general public and potential investors? Well if you have had this incredibly niche thought, you're definitely a member of the FI community, and you're also in luck! Brian Feroldi is back on the show to discuss financial statements and the information certain financial statements indicate, as well as act as your translator for the language of business! Understanding this language can be a massive help in your own decision making going forward! Brian Feroldi Twitter: @BrianFeroldi YouTube: Brian Feroldi Website: brianferoldi.com Timestamps 1:26 - Introduction 2:44 - Financial Statements 5:35- Read and Interpret 8:58 - The Three Main Financial Statements 13:33 - Balance Sheet Statements 22:09 - Utilizing Financial Statements 24:06 - Income Statements 30:04 - Claim on Earnings 33:58 - Cash Flow Statements 44:13 - Valuing a Business for it's Purposes 47:22 - Not All Businesses are Equal 50:16 - Conclusion Resources Mentioned In Today’s Episode Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage by Mary Buffett and David Clark https://www.fool.com/author/14471/ Stock Fundamentals With Brian Feroldi | ChooseFI Ep 200 Subscribe to The FI Weekly! If You Want To Support ChooseFI: Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence Track your personal finances with Personal Capital Compare, buy, and save big on insurance with Policygenius Keep learning or start a new side hustle with one of our educational courses Slash your cell phone bill without sacrificing service with Mint Mobile