Many people believe that investing in profitable companies automatically leads to handsome returns, but this isn’t always true. In my latest video, I explain why a company's reported profit doesn't necessarily mean it has that cash available to shareholders. I share examples of companies with high receivables or significant capital expenditures that may seem profitable on paper but don't deliver real value to investors. Understanding the difference between reported profit and actual financial health is crucial for making smarter investment decisions. Watch the video to learn why not all profitable companies are good investments and how to assess them better.
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