Quality of Earnings

"In the world of stocks, people generally prefer illusion to reality. Thornton makes a compelling case based on incentives as to why you should never trust an analyst and never trust an auditor, instead learn to do the work yourself. Through 12 chapters of dense, witty, example-laden text, Thornton captures several of the key ways corporations conceal the real earnings of their companies<br/><br/><u>Favorite Chapters</u><br/>- Non operating / Non recurring income: Can't describe it with precision, but I know it when I see it<br/>- Increasing and decreasing expenses: SG&A cuts both ways<br/>- Shareholder vs Tax Books: A good accountant knows income is whatever you want it to be<br/>- Accounts Receivable & Inventory: Spotting smokeless smokestacks<br/>"