When Rising Book Value Is Bad: A Case Study
In this episode, we talk about when rising book value is bad. Because when book value rises – while usually good – it isn’t always.
In my network of friends / family / colleagues, I’m most often known as ‘The Investment Guy’.
Because of this, I’m often asked about the latest trend in investing, whether it would be years ago, gold and silver, the Greek Crash a couple of years ago, or more recently, weed stocks and cryptocurrency.
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To see our other videos in this series, where I give my thoughts on weed stocks, crypto, diversification, retirement plans and more, click here.
Last week I did a live training showing you 1 company I was researching and comparing it to 3 others in its industry…
In that video, I told you why 1 company stood out as the best potential investment to me. And I also highlighted several things from my preliminary analysis checklist and showed you what they meant and why they were important.
I forgot to tell you one caveat though. When rising book value is bad. Because when book value rises – while usually good – it isn’t always.
In today’s video I’m sharing when rising book value is bad.
Let’s get to it…
A Summary
Here are some of the things I talked about in the 16 – minute video above:
- Explained when rising book value is bad.
- Why this usually comes down to rising goodwill and intangible assets.
- How to gauge whether rising book value is good or not based on what the balance sheet is telling you
- And more…
This video is part of the IloveValueInvesting Podcast. You can listen to this episode and our others in this podcast by going here.
If you have any questions at this point in the case study let me know in the comments below so I can answer them in future videos.
If you want to learn from our other case study videos for free click here.
And if you want to watch the video from last week where I showed you 1 potential investment I’m looking at today click the link below.
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What are your thoughts on this? Did I miss anything? Let me know in the comments below.
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